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L&Q maintains sector-leading credit ratings
Sep 16 2011
Credit rating agency Moody’s Investor Services have given L&Q another vote of confidence following a detailed financial and risk review.
While French banks, European nations and even the USA have seen their credit ratings downgraded in recent weeks, L&Q has maintained an Aa2 stable rating from Moody’s. This is in addition to the AA- positive rating from Standard & Poor’s.
The ratings are the joint strongest in the housing association sector and mean that L&Q will be able to borrow money at an attractive rate so that we can continue to build much-needed new affordable homes.
Access to affordable credit is vital as L&Q faces cuts in excess of 60% to the capital grant budget. The credit ratings will help to calm any investor fears about L&Q’s exposure to proposed reforms of the welfare system, regulatory uncertainty and the continued gloom hanging over the housing market.
Both agencies noted our track record of financial strength and management expertise as reasons for confidence in our creditworthiness.
Martin Watts, Head of Treasury at L&Q (pictured above), said: “The strong credit ratings reflect the hard work that our staff put in to deliver results against our core objectives and demonstrates to the investor community that L&Q is a safe long-term investment. This gives L&Q a competitive advantage when accessing capital - an important part of the equation to put new homes in the ground.”
Last week L&Q hosted an event at the Institute of Directors in central London where more than 60 influential stakeholders were given an update on our current financial position and our plans for the next five years.
