Genesis wins A1 Moody's rating
Genesis HG has been awarded an 'A1 - stable' rating by Moody's.
The rating incorporates Moody's assumption of a high likelihood of support from the UK government if Genesis were to face an impending default.
Thomas Amenta, Moody's international public finance group senior vice-president, said: 'The A1 rating reflects the group's satisfactory financial performance, its market leading position in temporary housing, its strong geographical concentration of operations in areas of high demand for social housing, the new management's commitment to tight risk controls and prudent investments, and the well-regulated environment in which English housing associations operate.'
Risks identified by Moody's include Genesis' exposure to temporary housing, its possible need for asset sales to help cover future interest payments, a relatively high debt burden in relation to turnover, and modest liquidity levels relative to capital investments.
'The stable outlook [rating] reflects Genesis' expected positive financial performance for the near term, which depends on strong property sales, within a prudent investment strategy,' said Gianfilippo Carboni, an associate analyst at Moody's.
