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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