Information  X 
Enter a valid email address

Civitas Soc Hous PLC (CSH)

  Print   

Wednesday 03 March, 2021

Civitas Soc Hous PLC

Fitch Assigns Civitas an Investment Grade Rating

RNS Number : 0341R
Civitas Social Housing PLC
03 March 2021
 

3 March 2021

CIVITAS SOCIAL HOUSING PLC

 

Fitch Ratings Limited assigns Civitas Social Housing PLC an Investment Grade High Credit Quality Rating of "A" (senior secured)

 

 

The Board of Civitas Social Housing PLC ("Civitas" or the "Company") is pleased to announce that Fitch Ratings Limited ("Fitch") have published their first-time rating on the Company.

 

Fitch confirms that Civitas has secured an Investment Grade High Credit Quality rating of "A" (senior secured) and a Long-Term IDR (Issuer Default Rating) of "A-" with a Stable Outlook.

 

The Rating Action Commentary ( click here ) sets out the key rating drivers and sensitivities that were considered by Fitch and which in turn reflects the review of the Company undertaken by Fitch supported by the Company's Investment Advisor, Civitas Investment Management ("CIM").

 

The report highlights a number of favourable attributes of the Company and the eco-system of specialist care in which the Company operates and that support the investment grade. These include:

 

· A low debt-to-equity ratio with a below 7.5x net debt/EDITDA and interest cover around 4.5x.

· Assisting local authorities to meet their obligations to provide accommodation for vulnerable adults.

· Facilitating provision that is at a lower cost to the State than other appropriate alternatives such as hospital settings.

· Long-term contractual terms between counterparties that enable individuals to obtain secure homes.

 

The Company has indicated previously an ambition to continue to evolve its debt funding strategy around the sourcing and delivery of debt facilities with a view to accessing the broader bond markets and other lenders. This is in addition to continuing to work with the Company's existing lenders with whom Civitas has built strong relationships.

 

Commenting on the securing of the rating Michael Wrobel, Chairman of Civitas said :

 

"We are very pleased to have secured a premium investment grade rating from Fitch who are a well-established rating agency with a strong familiarity to the alternative healthcare real estate space. This positive endorsement will enable the Company to pursue a broader strategy in relation to debt funding in due course."

 

ENDS

 

For further information, please contact:

 

Civitas Investment Management Limited

Paul Bridge                                      Tel: +44 (0)20 3058 4844

Andrew Dawber                                   Tel: +44 (0)20 3058 4846

 

Panmure Gordon

Sapna Shah                                           Tel: +44 (0)20 7886 2783

Tom Scrivens Tel: +44 (0) 20 7886 2648

 

Liberum Capital Limited

Gillian Martin / Chris Clarke Tel: +44 (0) 20 3100 2222

 

Buchanan

Helen Tarbet / Henry Wilson   Tel: +44 (0) 20 7466 5000

Hannah Ratcliff / George Beale    [email protected]

 

 

 

Notes:

Civitas Social Housing PLC (CSH) was created in 2016 by Civitas Investment Management Limited as the first dedicated London listed REIT, to raise long-term, sustainable, institutional capital to invest in care-based social homes across the UK. So far, CSH has completed more than 120 individual transactions to build the largest portfolio of its kind that has been independently valued on an IFRS basis at £901.1million. CSH provides homes for 4,295 working age adults with long-term care needs, in 619 bespoke properties that are supported by 118 specialist care providers, 16 approved providers over 164 individual local authority areas.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
MSCUPURUWUPGGGW

a d v e r t i s e m e n t