S&P Global Ratings downgraded its long-term issuer credit rating on Town and Country Housing Group to A from A+ and removed the rating from CreditWatch with negative implications.
The ratings outlook is stable.
The rating agency said the downgrade takes into account the recent joining of Town and Country with fellow U.K.-based social housing provider Peabody Trust as its unit.
According to Ratings, the Peabody group's credit profile is weaker compared to Town and Country's stand-alone profile, and Town and Country, as part of the Peabody group, will be more exposed to lower-margin market sales activities than before.
The stable outlook reflects the rating agency's expectation that the group will sustain EBITDA margins of more than 25% after a substantial but temporary weakening in the year to March 31.
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.