News

MTVH’s credit rating maintained at A- Stable by S&P

20 December 2024

Summary: Decision by Standards & Poors comes despite continuing challenges across the sector


Credit rating agency Standard & Poor’s (S&P) has maintained MTVH’s credit rating at A- with a Stable outlook after its annual review of MTVH’s financial position and outlook.

In its report published today S&P states that MTVH is “making strategic decisions and taking proactive measures to contain the impact of macroeconomic and regulatory pressure on its financials”. This regulatory pressure primarily relates to MTVH’s significant fire and building safety investment programme, announced in January 2024, which S&P says is “detailed” and can be delivered “within (MTVH’s) operational and financial capacity.”

S&P anticipates that MTVH’s adjusted EBITDA margins will remain “slightly above 20% in the coming three years” and that MTVH’s liquidity remains “very strong” with liquidity sources of “about £1 billion” over the next twelve months compared to liquidity uses of £540 million.

Ian Johnson, Chief Financial Officer, MTVH commented: “We are pleased to have maintained our credit rating at A- Stable at a time when we, and the rest of the sector,  are juggling multiple financial pressures.

We are committed to improve the safety of our existing stock without passing those costs on to residents, we maintain our ambition to develop the affordable homes the country needs, and we do this in a high interest rate and inflationary environment.

It’s pleasing therefore that S&P have highlighted the positive steps we have taken as a management team to identify fire safety remediation costs early, provide for them and build a detailed delivery plan.

Our ongoing proactive financial management and strong liquidity position means we continue to look after the need of all our residents while developing the new decent and affordable homes that the country needs.”

The full report can be found here: RatingsDirect_ThamesValleyHousingAssociation_60288621_Dec-20-2024.pdf