Martlet Homes Ltd. Proposed Benchmark Bond Rated #A+#

Stocks and Financial Services Press Releases Thursday April 20, 2017 17:56
LONDON--20 Apr--S&P Global Ratings

LONDON (S&P Global Ratings) April 20, 2017--S&P Global Ratings said today that it assigned its 'A+' issue rating to the proposed benchmark senior secured bond issuance by Martlet Homes Ltd. (the issuer), a subsidiary of the U.K. housing association Hyde Housing Association Ltd. (Hyde), which we view as having core group status within the Hyde Group.

The 'A+' rating on the bond reflects the rating on Hyde (A+/Negative/--) and therefore if we raise or lower the rating on Hyde, that is likely to affect the rating on the bond.

The debt comprises direct secured obligations of Martlet and will rank pari passu without any preference or priority among themselves. The bonds are also secured on first and fixed charges over social housing properties held by Martlet.

This will contribute to Hyde's debt increasing over the next three years along with its asset base, in line with our October 2016 base-case forecast.
Therefore, we believe the bond issuance does not have any impact on Hyde's creditworthiness compared with our October 2016 rating review on Hyde (in particular its debt profile).

Martlet will use the proceeds of the bond to refinance Martlet's existing bank facilities and the Hyde Group's debt facilities, and in the future they will contribute to the Hyde Group's funding of the development plan.

Martlet is a registered housing association that became a subsidiary of the Hyde Group in 2007 and operates in the South East of England.

It currently owns close to 20% of the Hyde Group stock. In our view, Martlet is integral to the Hyde Group's strategy, is using the Hyde brand, and will continue to display a solid financial profile over the next years along with the additional debt taken resulting from this bond issuance.


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