Fitch: A2Dominion bonds A+

Fitch Ratings said it assigned an expected A+ rating to A2Dominion Housing Group Ltd.'s £1 billion euro medium-term program and its proposed bond issue.

The expected ratings are aligned with A2D's long- and short-term issuer default issuer default ratings as the program and the notes under the program are expected to constitute unconditional, unsecured and unsubordinated liabilities of the issuer, Fitch said.

The ratings will rank equally with all other direct obligations of A2D and are linked to its long-term issuer default rating, the agency said.

The company’s liquidity management is considered sound and provides sufficient coverage for its forthcoming issuance under the program, Fitch explained.

The purpose of the program is to raise funding for general corporate purposes, including the acquisition and development of housing properties of differing tenures, diversify funding and smooth the debt-maturity profile, the agency said.

The first bond issue is likely to be for £250 million, which may include a retained amount of up to £100 million, Fitch said.

The ratings reflect the company’s secured cash flow from public funds and the control and regulation provided by the government agency, Fitch added.

The ratings also consider continuing demand for social housing in the south of England where A2D operates, the agency said, as well as continued cash flow from rented properties.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.