Regulatory grading update
Following a stability check by the Regulator of Social Housing (RSH), Habinteg’s new grading for the viability standard has been published.
Habinteg has been awarded a compliant V2 grade for viability, and retains its compliant G2 rating for governance.
Regrade driven by investment in homes, inflation, and interest rates
Explaining the regrade, RSH stated: “Habinteg complies with the financial viability elements of the Governance and Financial Viability Standard…
“…its financial plans are consistent with, and support, its financial strategy. Habinteg has an adequately funded business plan, sufficient security, and is forecast to continue to meet its financial covenants.
“Habinteg is increasing investment in its existing homes. This investment has a material impact on the provider’s key financial metrics, weakening its interest cover position. When coupled with the current economic environment including inflationary and interest rate pressures, this reduces Habinteg’s capacity to manage a wide range of adverse events.”
Commenting on the announcement, Habinteg’s CEO Nick Apetroaie said: “We accept today’s regulatory judgement that Habinteg continues to meet the viability standard, which reflects Habinteg’s commitment to increased levels of investment in our customers’ homes. We will continue to deliver the improvements we have committed to.
"Our long-term business plan continues to be supported by a strong financial position, and we will regularly review our plans in light of the external economic context.
“We are also working with RSH, our Board, our staff and customers in order to further strengthen our governance arrangements with a view to regaining G1 grading."
