Moody’s rating positive for Moat’s financial outlook

Published by DeanW for Moat Homes Ltd in Housing and also in Bill Payments, Central Government

Moat has been assigned credit rating Aa2, a high investment-grade rating, by the global credit rating agency, Moody’s. 

The rating reflects various factors of Moat’s management that have contributed to the strong financial position noted in Moody’s report. In particular, at the end of 2009/10, low-risk social housing letting contributed the bulk of Moat’s revenue and surplus, providing a strong foundation to cover interest costs. This demonstrates that the organisation has not been reliant on high-risk sales to cover interest since 2007/08, which included the peak of the disruption in financial and housing markets. Moody’s report also notes that Moat has a moderate debt burden of around 4 x revenues and less than 40% of assets. 

Gianfilippo Carboni, an Analyst in Moody’s Sub-Sovereign Group, says; “The stable outlook reflects expectations of Moat’s good and improving financial performance over the near term due to tighter spending controls and greater efficiencies in operations.”

Greg Taylor, Moat’s Executive Director: Finance, says; “Moody’s rating is a key indicator of Moat’s financial strength and ability to deliver high quality homes and an excellent customer experience to all of our residents. This rating demonstrates that we are in an excellent position to preserve our financial stability and pursue a strategy of growth as we move forward. We are currently evaluating all sources of funding including a bond issue. ”