REG - EMH Treasury plc - Regulator Grading Update and Credit Rating update

S&P GlobalAnnouncement

22/01/2025 19:00

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RNS Number : 3586U  EMH Treasury plc  22 January 2025

Emh Treasury plc

 

22 January 2025

 

Regulatory Grading Update and S&P Global Ratings' credit rating January
2025

 

 

On 27(th) November following a periodic inspection the Regulator published its
 regulatory judgements on emh - the full report can be found via this link
East Midlands Housing Group Limited (L4530) - Regulatory Judgement: 27
November 2024 - GOV.UK
(https://www.gov.uk/government/publications/regulatory-judgement-east-midlands-housing-group/east-midlands-housing-group-limited-l4530-regulatory-judgement-27-november-2024)
 

 

Governance (G) - We have retained the highest rating of G1

Viability (V) - We have retained a rating of V2

Consumer (C) new standard - We were awarded a rating of C2

 

Overall, the outcome was as expected and positive.

 

We are pleased to have achieved the strongest rating for Governance,
demonstrating that we are a well-run organisation.

 

The viability rating recognises that we are investing more in our new and
existing homes and like others in the sector exposed to volatile economic
conditions. This reflects a solid foundation for emh and the ability to
deliver on our business objectives.

 

The Regulator acknowledged significant areas of good practice in all areas,
including many covered by the Consumer Standards. We are aware that there is
more work to be done on some aspects of the Consumer Standards and achieving a
C2 rating on our first attempt is reasonable, especially given the recent
changes aimed at improving our services. Many of these changes are still being
embedded and will deliver positive outcomes for our residents over the course
of the next year.

 

Our ambition is to reach a C1 rating, we have gained valuable insights from
this experience and work is already underway to develop an action plan to
address all the areas for improvement.

 

On 21(st) January 2025 S & P have confirmed emh's rating remains A with a
stable outlook. Geoff Clarke, Exec Director of Finance, said he is delighted
with the outcome, which is a result of colleagues, across the business, having
an awareness of costs and associated risks within key areas of the
organisation.  A copy of the full report is available here.
(https://www.emh.co.uk/media/6159/east-midlands-housing-group-ltd-a-rating-affirmed-outlook-stable-jan-21-2025.pdf)
S & P's rationale for the decision is that:-

 

"The rating affirmation reflects our view that emh's prudent cost planning and
improvement in economic conditions will help to stabilize financial metrics
despite increased investments in existing homes. We acknowledge the group has
a solid assessment of its stock condition and has secured grant funding to
perform the necessary works. We also think group's proactive approach in
securing development grants will partly lower borrowing needs, preventing debt
metrics from weakening."

 

For further information please contact:

 

Jonathan Dwyer

Head of Treasury and Financial Planning

emh group

Telephone:      078 1133 2219

Email:  Jonathan.Dwyer@emh.co.uk

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