Silva Homes has received a credit rating of A+ with a stable outlook from credit-rating provider S&P Global.
The grading reflects Bracknell-based Silva’s financial stability, management strength, and successful development strategy.
This rating maintains Silva’s position in the second-highest tier of social landlords ranked by S&P.
The ‘stable’ outlook means that the rating is unlikely to be downgraded in the future, with S&P confident that Silva – which has 14,000 customers in the south-east of England – is continuing toward long-term financial success.
The A+ rating was based on a set of criteria assessing the gamut of Silva’s financial activities. Areas considered by S&P included:
- Development plans for more new homes
- Annual revenue generated by different areas of the business
- Cash reserves and overall financial strategy and management
“Testament to hard work”
Commenting on the grading, Silva’s executive director of finance and procurement, John Andrew, said: “Confirmation of our A+ credit rating is testament to the hard work that our teams have put into maintaining our financial strength and viability which will allow us to build the affordable homes that are desperately needed across our region, while improving the quality of our existing homes and the services we provide to our customers.
“We have maintained our core services during the lockdown imposed to deal with COVID-19 and expect to minimise the financial impacts on our business. This rating by S&P proves that our strategy of investing today for a secure tomorrow is working.”
In its report published on 25 June, S&P stated that Silva’s financial credit rating reflected an expectation that long-term profit margins will improve once the initial impacts of the COVID-19 pandemic have been overcome.
The report stated that Silva was “quick to respond” to the pandemic, highlighting the association’s rapid switch to remote working and its continued communication with customers.
S&P did note, however, that Silva’s gross rental arrears have increased slightly compared to their historical three-year average. Though, they remain favourable compared to other housing associations.
Silva Homes’ future
Silva Homes is an independent not-for-profit housing association that oversees over 6,500 rented properties homes, 1,400 homeowners, and 2,500 garages in the south-east of England.
In March, Silva obtained £25m of new long-term loan funding through a private investment arranged by the Housing Finance Corporation, at an interest rate of 2.26%.
Silva plans to invest these funds in new homes, and to improve existing homes by implementing new technology as part of its ongoing digital transformation programme.
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