LONDON (S&P Global Ratings) Nov. 15, 2023--S&P Global Ratings today published two articles on the 62 social housing providers (SHPs) that it rates outside the U.S., namely in the U.K., Germany, Sweden, France, Canada, the Netherlands, and New Zealand. (See "Non-U.S. Social Housing Providers Ratings Risk Indicators: November 2023," and "Non-U.S. Social Housing Providers Ratings Score Snapshot: November 2023," published today.)
Over the past 12 months, the number of rated SHPs has edged down to 62 from 63. We assigned two new ratings in Germany and withdrew one rating in Australia at the issuer's request and one in the U.K. following a merger. In addition, one U.K.-based SHP became a subsidiary of another. We took 27 rating actions over the same period, mainly due to economic and regulatory conditions that continue to put pressure on the creditworthiness of the non-U.S. SHPs. The rating actions have predominantly been on the U.K. SHPs.
Of the non-U.S. SHP ratings, 65% have a stable outlook, which is an improvement from March 2023, when we last published our ratings risk indicators, and when only 60% had a stable outlook.
While we still think that our ratings on the non-U.S. SHPs are likely to remain largely within the 'A' category, there is a slight bias toward the weaker end. There is also a large proportion of negative outlooks (30%), four of which are on 'A-' ratings, so there is a risk that we could downgrade more SHPs to the 'BBB' category over the next two years.
Because of the pressures across the sector, we believe that SHPs' management and governance practices are increasingly important to ensure solid financial performance, cash flow generation, and debt metrics, as well as the long-term viability of the business.
This report does not constitute a rating action.
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|Primary Credit Analyst:||Karin Erlander, London + 44 20 7176 3584;|
|Secondary Contacts:||Felix Ejgel, London + 44 20 7176 6780;|
|Noa Fux, London + 44 20 7176 0730;|
|Additional Contacts:||Mahek Bhojani, London +44 2071760846;|
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|Tim Chow, CFA, London +44 2071760684;|
|Sabine Daehn, Frankfurt + 49 693 399 9106;|
|Freja L Dobreff, Stockholm +46 84405938;|
|Ekaterina Ermolenko, Stockholm 46 708 770 286;|
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|Hugo Soubrier, Paris +33 1 40 75 25 79;|
|Michael Stroschein, Frankfurt + 49 693 399 9251;|
|Eileen X Zhang, CFA, London + 44 20 7176 7105;|
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