S&P Global Ratings revised its outlook on Futures Housing Group Ltd. to stable from negative, while affirming its A+ long-term issuer credit rating on the U.K.-based homebuilder.
The stable outlook is based on Ratings' expectation that the company's management will maintain strong operational efficiency and financial performance, supported by high demand for social housing.
The rating agency expects the company's financial profile to remain strong as it expects that around 500 new rental and 170 sales units will be developed over its three-year forecast period. This could generate more than £22 million of revenues and boost the five-year average EBITDA margin to 37% and five-year average EBITDA interest cover to 2.4x, in line with its previous estimate. Ratings expects the company's average debt-to-EBITDA ratio at just over 10x.
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