Credit Rating Announcement

Karbon Homes Ltd: 'A' Rating Affirmed, Outlook Stable

Northern housing association Karbon Homes has had its A credit rating affirmed by ratings agency Standard & Poor's.

Karbon, which owns 34,000 homes across the North East and Yorkshire, also had its stable outlook reaffirmed, reflecting S&Ps expectation that Karbon's credit metrics will remain largely stable.

S&P expressed that Karbon's strong rental income paired with adjustments to its future development programme, will balance the impact of elevated planned investments in its stock.

Scott Martin, Executive Director of Resources at Karbon Homes, said:

"Against a challenging operating environment, we're really pleased to have retained our A rating. The stable outlook reflects our continued focus on balancing financial performance with delivering customer priorities, and our commitment to improving and achieving efficiency gains.

"It highlights that our debt metrics remain relatively solid, despite the elevated cost of investing in our existing homes. This has been maintained through a prudent strategy and strong management practices, underpinned by strong oversight of our housing assets.

"S&P commented specifically on the cost controls and adjustments we've made to our future development program, to contain pressure on our metrics. We are seeking ways to meet our affordable housing ambitions and expand operations without incurring large upfront debt requirements and are looking to institutionally backed models of new home delivery to achieve this.

"This affirmed credit rating will enable us to continue with our mission to provide our customers and communities with a 'strong foundation for life', helping people to shape and develop their own future through our three strategic aims of Homes, Customers, and Place."

The full report from S&P will be made available on our website at:

https://www.karbonhomes.co.uk/corporate/