S&P Global Ratings assigned U.K.-based social housing association The Wrekin Housing Group Ltd. an A long-term issuer credit rating, with a stable outlook.
The action, which is one notch higher than its A- stand-alone credit profile, takes into account the moderately high potential for the U.K. government's Regulator of Social Housing to back the group in case of financial distress.
Ratings said Wrekin's financial profile is adequate, driven by strong margins and liquidity after the planned refinancing of its entire debt load, although its increasing debt poses barriers.
The company is expected to generate Ratings-adjusted EBITDA of above 30% of revenues, thanks to its strong social housing asset base.
The stable outlook reflects the rating agency's view that Wrekin's management will keep its strategy focused on social housing leases, while successfully managing the higher debt burden after the refinancing.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.
