Moody's downgrades Bromford Housing

Moody's Investors Service said it downgraded the issuer rating and backed senior secured rating on Bromford Housing Group to A2 from A1.

The agency also said it changed the outlook to stable from negative.

The downgrades reflect the company's continued growth ambitions and increasing market sales exposure over the next three years, Moody's said.

Bromford's debt metrics are expected to weaken materially for fiscal 2019 as the housing association increased its debt to fund the delivery of its development program, the agency said.

The company's debt-to-revenues are expected to jump to 4.3x for fiscal 2019, from 3.6x in fiscal 2018, Moody's said.

The ratings are supported by the company's strong market position as one of the largest housing associations in the United Kingdom following two recent mergers, the agency said.

© 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.