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Social housing provider ClwydAlyn has had its ‘A’ credit rating affirmed


Social housing provider ClwydAlyn has had its ‘A’ credit rating affirmed.

The housing association, which manages more than 6,000 homes across seven counties in North and Mid Wales, retained its ‘A’ rating from business intelligence agency Standard and Poor’s (S&P).

S&P also affirmed its ‘A’ rating on ClwydAlyn’s previously issued £250 million public bond, which was issued in 2017 by PenArian Housing Financer PLC, ClwydAlyn’s treasury subsidiary. £160 million refinanced existing debt and a further £90 million retained for future investment.

At the time it was the first bond issued by a Welsh housing association.

During 2020/21 £15 million was drawn from the Bond, with £10m more in 2021/22. In May 2022 a further deferred draw down was agreed with £20 million due to be received in May 2023 and £20 million due in November 2023.

In July 2022 ClwydAlyn carried out a tap on the Bond of £150 million which has increased the overall value of the Bond to £400 million with £175 million still available to draw.

The rating recognises ClwydAlyn’s ambitious development programme, its growing revenue base and the supportive policy framework it benefits from in Wales. Its outlook was deemed to be ‘stable.’

ClwydAlyn has a mission to beat poverty and address the significant shortfall of affordable and social housing across Wales. The landlord is investing in a variety of schemes to help address income, food and fuel poverty.

ClwydAlyn has delivered 730 homes so far and aims to deliver a further 1,000 by 2024/25.

Paul McGrady, Executive Director of Resources at ClwydAlyn, said:

“We are pleased to have retained our A rating as we look to ramp up our activities that will focus on the development of new homes and a mission to beat poverty.

“Once again S&P recognise our strong financial position and the relationship we have with the Welsh Government.

“This will be vital in allowing us to develop much needed new homes.”

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