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Civitas Social Housing achieves investment grade credit rating

Civitas Social Housing has secured Investment Grade credit rating with Fitch Ratings.

It has been rated High Credit Quality rating of “A” (senior secured) and a Long-Term IDR (Issuer Default Rating) of “A-” with a stable outlook.

The rating will allow Civitas to grow its debt funding strategy and gives it access the broader bond markets and other lenders.

The rating report highlighted:

  • A low debt-to-equity ratio with a below 7.5x net debt/EDITDA and interest cover around 4.5x;
  • Assisting local authorities to meet their obligations to provide accommodation for vulnerable adults;
  • Facilitating provision that is at a lower cost to the State than other appropriate alternatives such as hospital settings; and
  • Long-term contractual terms between counterparties that enable individuals to obtain secure homes.

Commenting on the securing of the rating Michael Wrobel, chairman of Civitas, said: “We are very pleased to have secured a premium investment grade rating from Fitch who are a well-established rating agency with a strong familiarity to the alternative healthcare real estate space. This positive endorsement will enable the company to pursue a broader strategy in relation to debt funding in due course.”

CSH : Civitas Social Housing achieves investment grade credit rating

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