Moody's Credit Rating

AmicusHorizon is rated A2 by Moody's Investor Services. In March 2017 Moody’s placed the rating under review for upgrade ahead of the anticipated merger with Viridian Housing, saying:
  • "We expect that the merger with Viridian Housing will improve debt metrics of the combined entity beyond what AmicusHorizon would have achieved on a standalone basis, due to Viridian Housing's historically low level of indebtedness. In FY2018, the first reporting year of the new entity, debt as a percent of assets-at-cost is estimated to be 42%, significantly lower than the 53% registered by AmicusHorizon in FY2016. Furthermore, we expect that the Cash Flow Volatility Interest Coverage (CVIC) of the merged entity will strengthen to over 2x in the next two years, past AmicusHorizon's expected performance on a standalone basis.
  • Moreover, due to a concerted effort to drive more efficiency into its business on a standalone basis, AmicusHorizon, has improved its profitability. The association's operating margin has improved from 21% in FY2013 to 29% in FY2016, driving a material improvement in the Social Housing Letting Interest Coverage (SHLIC) from 0.9x to 1.4x in the same time period. We expect these improvements to be maintained in the merged entity, demonstrated by the forecast 27-29% operating margin, and SHLIC of 1.6x over the next two years, in-line with AmicusHorizon's expected performance on a standalone basis."
AmicusHorizon was initially rated Aa3 in March 2012, when the public bond was first sold. In line with our peers the rating was downgraded once in February 2013 to A1 and again in May 2013 to A2, reflecting Moody’s reassessment of the level of “extraordinary support” from the UK government for our sector. The rating is underpinned by the following factors:

• High proportion of low-risk social-housing letting
• Stable and moderate debt levels, appropriate interest coverage ratios
• Modest capital program supported by a strong liquidity position
• Strong regulatory framework.

Find out more about Moody’s Credit Opinion.