Information  X 
Enter a valid email address

Optivo Finance PLC (20SY)

  Print   

Friday 02 October, 2020

Optivo Finance PLC

Optivo welcomes Moody's stable credit rating

RNS Number : 0154B
Optivo Finance PLC
02 October 2020
 

Press release: Optivo welcomes Moody's stable credit rating

Responding to Moody's Investor Services' announcement today updating Optivo's credit rating from A2 (negative outlook) to A3 (stable outlook), Optivo Chief Financial Officer Sarah Smith said:

"Since Optivo formed in 2017 we've embarked on a path of measured growth to deliver our charitable objects.  We have chosen to leverage our strong balance sheet together with new government grant funding and new external borrowing to fund much-needed new affordable housing and to invest in the safety of our residents and energy efficiency of our existing homes.

All within carefully controlled financial limits which deliver a strong investment grade credit rating in the 'A' category which is important to our long-term capital markets investors.  We expect now to maintain this credit rating.

We recognise the fine judgements Moody's make in coming to their view, considering our credit strengths versus those of our immediate peers in the social housing sector and against a global portfolio covering a wide range of credits.

We're pleased Moody's identify our profitable core business, strong market position, strong balance sheet and unencumbered asset position, strong financial policies, liquidity and stress testing as well as grant flexibility and liquidity as areas of particular credit strength.

And we're among a leading group of social housing providers bringing Environmental Social & Governance (ESG) investment considerations to the fore, reporting ( link ) in line with The Good Economy's May 2020 White Paper."

Tom Paul , Optivo's Director of Treasury & Commercial added:

"Moody's have rated Optivo, and AmicusHorizon before that, for nine years now.  Over that time we've admired Moody's challenge and willingness to engage and hear our story.

Nine years ago, AmicusHorizon was first rated Aa3, which at that time was in the lower half of Housing Association issuers.  Since then a series of efficiency programmes have delivered sustainably higher surpluses, and the merger to form Optivo in 2017 prompted a relative upgrade compared to peers. 

While the business is now bigger our strategy has been consistent: to deliver sector-leading services to our residents and a risk-managed social housing development programme to enable us to help more people in need of adequate housing.

Moody's placed us on 'negative outlook' a year ago, recognising our growth plans, and today's news gives welcome clarity to us, our lenders and investors.  Our updated A3 rating now puts us in line with most other developing housing associations in our sector, including some of the largest and most frequent debt issuers.

We know our investors hold Moody's analysis in high regard, and we have no immediate plans to obtain a second credit rating."

More information

https://www.optivoinvestors.co.uk/

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
STRKKBBNABDDDKK

a d v e r t i s e m e n t