Stonewater Funding plc

2 December 2024

Regulatory Grading Update and S&P Global Ratings' credit rating November 2024

On 13 November 2024, following a stability check, Stonewater retained its G1 / V1 regulatory gradings which remain assessed and unchanged. The ratings are the highest available of the four levels and demonstrates that Stonewater meets the standards of governance and viability requirements set by the regulator.

Nicholas Harris, Chief Executive of Stonewater, said: "In what continue to be challenging times for housing providers, it's good to let our colleagues, partners and customers know that we have retained these judgements from the regulator and continue to be an adaptable and reliable organisation.

"Retaining these top ratings is testament to the commitment and hard work of colleagues across the organisation and it is reassuring to know we continue to meet the highest possible standards of both governance and financial viability."

On 27 November 2024, S&P Global Ratings issued a rating update for Stonewater Limited, lowering its long-term issuer credit rating to 'A-' from 'A'. The outlook is stable.  The full report is available here. 

S&P have highlighted that the outcome reflects their view that investment in existing homes will remain elevated, albeit do reference that the potential for grant funding and management's focus on cost efficiencies will prevent the group's credit metrics from deteriorating further. In addition, S&P comment that the group's strategy to scale back developments will lessen the pressure, because it will contain both the pace and scale of debt buildup.

Anne Costain, Chief Financial Officer said: "Stonewater remains resolute to its vision for everyone to have the opportunity to have a place they can call home. We remain committed to active investment in our existing asset base, which remains a core priority for both Board and Executive despite the macroeconomic climate which has affected all housing associations. We also have a clear focus on the delivery of cost efficiencies to support the group's resilient financial position to help support and maintain our credit ratings".

 For further information, please contact:

Anne Costain

Executive Director of Finance

Stonewater

Suite C Lancaster House

Grange Park

Enderbury Road

Whestone

Leicester LE8 6EP

Telephone: 07392 092473

Email: Anne.Costain@stonewater.org