New S&P rating for Octavia

On 15 December 2022, S&P Global Ratings confirmed Octavia’s rating of ‘BBB+’. This is a change from the organisation’s previous rating of ‘A-’. 

S&P adjusted their rating to reflect their view that Octavia has limited capacity to mitigate the effects of cost overruns, high inflation, rising interest rates, and the government-imposed rent cap 

Sandra Skeete, Octavia CEO, said:  

“Whilst this is disappointing, we remain focused on delivering quality services, investing in our homes, and keeping our residents safe. Our liquidity remains strong, enabling us to deliver our aims and through our refinancing in October 2022, we obtained £180m of committed facilities as part of our long-term Corporate Finance Strategy. 

"Like the rest of the sector, Octavia currently faces strong headwinds and increasing demands. We fully understand the challenges ahead and are focused on managing the associated risks. 

"S&P has stated that they consider that Octavia benefits from its operations that are based in an area with strong housing demand and that the outlook could be revised to stable if management's actions taken are reflected in a performance that is in line with, or better than, the base-case scenario. 

"With over 5,300 homes for rent and shared ownership in sought-after central and west London locations, Octavia has a strong asset base, and our homes are in demand. We continue to offer affordable rents to people on the lowest incomes, in some of the most expensive parts of the capital and remain committed to our social purpose.  

"Resident safety is our top priority, and we place great significance on the energy efficiency of our homes, both of which we are substantially investing in.  

"With our Board we will continue reviewing our ambitions and priorities in view of the current uncertain times.” 

ENDS