Major boost for whg as key credit rating agency upgrades outlook to positive

• 22nd February 2022

Corporate news

Credit rating agency Moody’s has upgraded whg’s outlook from stable to positive, in a major boost for the Midlands-based landlord.

Moody’s also reaffirmed whg’s A3 credit rating, reflecting its solid operating performance and financial management despite difficult economic conditions.

This latest rating action is a major endorsement of the financial performance of the affordable housing provider. It gives investors and partners further confidence in whg’s financial stability and preparedness for future challenges.

The outlook change from stable to positive reflects expectations that whg’s marked improvement of balance sheet strength will continue, with Moody’s noting the business’s interest coverage ratio was stronger than its peers.

Moody’s raised the score for whg’s financial management, one of two key governance considerations, reflecting whg’s stable strategy with sensible development targets and well-defined risk appetite underpinned by established golden rules to limit exposure to risks and to maintain financial resilience.

Moody’s noted that the landlord had a fully funded business plan to upgrade all homes to Energy Rating C by 2030, a key consideration when assessing whg’s credit profile.

Sangita Surridge, Corporate Director of Finance, said: “We are proud to have a strong business plan, supported by years of careful financial planning and we are thrilled this has been reflected in Moody’s latest decision to upgrade our outlook from stable to positive.

“As a profit-for-purpose business we invest all profit back into the business to improve our homes, build more affordable housing and support our communities. This is a real vote of confidence from Moody’s and demonstrates how we are prepared to tackle future challenges to ensure all our customers have a safe and secure place to call home.”

Moody’s is a major credit ratings agency which provides ratings to many registered providers and its opinions are key in allowing landlords to secure finance from lenders.