Gateway Housing Achieves Top Stability Rating: G1/V1
Gateway Housing Association has been regraded from V2 to V1 and retained our existing G1 grade for governance.
Read the full letter below:
The regulator has assurance that Gateway Housing Association Limited (Gateway) complies with the financial viability elements of the Governance and Financial Viability Standard and that its financial plans are consistent with, and support, its financial strategy. Gateway has an adequately funded business plan, sufficient security, and is forecast to continue to meet its financial covenants.
Our previous judgement noted that increasing planned investment in existing homes, including on fire and building safety and energy efficiency work, had a detrimental impact on interest cover. Alongside potential further spending on energy efficiency works and economic uncertainty in relation to inflation and interest rate risks, this reduced Gateway’s capacity to deal with adverse scenarios.
Gateway’s forecast interest cover profile has now strengthened, informed by recent stock condition surveys and the clarification of liabilities for required fire and building safety work. This increases Gateway’s capacity to deal with adverse scenarios.
The regulator’s assessment of Gateway’s compliance with the governance elements of the Governance and Financial Viability Standard remains unchanged. On the basis of the Stability Check, the regulator has concluded that there is no evidence to indicate a change to Gateway’s current governance grading.