Also today, the RSH restated its G1/V2 rating for Rochdale Boroughwide Housing (RBH) but changed the basis for its viability grade following an in-depth assessment (IDA).
A V2 grading indicates a “need to manage material risks to ensure continued compliance” with the financial viability standard.
In a regulatory judgement for the 12,700-home social housing mutual, the regulator said: “RBH continues to deliver a large-scale regeneration project.
“The investment expenditure and additional debt required for the project are significant, weakening RBH’s financial profile in the medium term.
“During this period, loan covenant compliance is put under pressure.
“These exposures give rise to material risks that RBH needs to continue to manage and which reduce its capacity to respond to adverse events.”
RBH intends to build 496 homes over the next five years and is currently moving residents out of the College Bank Estate for regeneration, in a project which has been controversial locally.
The regulatory judgement added that RBH’s governance arrangements “enable it to adequately control the organisation” and that its “financial plans are consistent with, and support, its financial strategy”.
Gareth Swarbrick, chief executive of RBH, said: “I am very pleased that we have received this judgement in the same week that we celebrate eight years as a pioneering mutual housing society, jointly owned by our tenants and employees.”
He added: “The judgement acknowledges that delivering the quality of homes that town centre residents deserve, especially in our high-rise blocks, requires a significant level of investment, and that until this element of the regeneration is complete, some financial pressures will remain.”
Another six regulatory judgements were published today following IDAs, all resulting in G1/V1 grades being maintained – the highest possible score.
They were for Sovereign Housing, Home Group, Together Housing Group, Curo, Plymouth Community Homes and Community Gateway Association.
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