Emh Treasury plc

22 January 2025

Regulatory Grading Update and S&P Global Ratings' credit rating January 2025

On 27^th November following a periodic inspection the Regulator published its  regulatory judgements on emh - the full report can be found via this link East Midlands Housing Group Limited (L4530) - Regulatory Judgement: 27 November 2024 - GOV.UK  

Governance (G) - We have retained the highest rating of G1

Viability (V) - We have retained a rating of V2

Consumer (C) new standard - We were awarded a rating of C2

Overall, the outcome was as expected and positive.

We are pleased to have achieved the strongest rating for Governance, demonstrating that we are a well-run organisation.

The viability rating recognises that we are investing more in our new and existing homes and like others in the sector exposed to volatile economic conditions. This reflects a solid foundation for emh and the ability to deliver on our business objectives.

The Regulator acknowledged significant areas of good practice in all areas, including many covered by the Consumer Standards. We are aware that there is more work to be done on some aspects of the Consumer Standards and achieving a C2 rating on our first attempt is reasonable, especially given the recent changes aimed at improving our services. Many of these changes are still being embedded and will deliver positive outcomes for our residents over the course of the next year.

Our ambition is to reach a C1 rating, we have gained valuable insights from this experience and work is already underway to develop an action plan to address all the areas for improvement.

On 21^st January 2025 S & P have confirmed emh's rating remains A with a stable outlook. Geoff Clarke, Exec Director of Finance, said he is delighted with the outcome, which is a result of colleagues, across the business, having an awareness of costs and associated risks within key areas of the organisation.  A copy of the full report is available here. S & P's rationale for the decision is that:-

"The rating affirmation reflects our view that emh's prudent cost planning and improvement in economic conditions will help to stabilize financial metrics despite increased investments in existing homes. We acknowledge the group has a solid assessment of its stock condition and has secured grant funding to perform the necessary works. We also think group's proactive approach in securing development grants will partly lower borrowing needs, preventing debt metrics from weakening."

For further information please contact:

Jonathan Dwyer

Head of Treasury and Financial Planning

emh group

Telephone:      078 1133 2219

Email:  Jonathan.Dwyer@emh.co.uk