Clarion Housing Group’s scale and financial strength delivers a number of benefits:
- Resilience to risk - we are able to manage adverse trading conditions and absorb market shocks.
- Efficiency - we can realise economies of scale, building on our successful track record.
- Influence - our scale affords us the ability to influence government policy for the benefit of our customers, our business and the sector as a whole.
Our business plan has strong growth ambitions, which will be managed through a prudent framework for planning and decision making, provided through a set of agreed “Financial Golden Rules”. These are designed to recognise business risks and govern our operating margins, net debt/turnover, sales as a percentage of turnover and social housing interest cover.
The business plan is also regularly stress-tested, both on single variant scenarios as well as more intense ‘multi-variant’ scenarios.
Clarion Housing Group seeks to maintain diversification in its funding sources with the majority coming from bilateral loans from banks and building societies and the remainder from the capital markets. The Group is committed to maintaining a strong investment grade rating. It is currently rated by Moody’s as A3 with a stable outlook and by Standard & Poor’s as A with a stable outlook. Copies of the rating opinions are available on request.
Maintaining our strong financial position is one of our core objectives, without this we would not be able to achieve our ambitions of:
- Building 50,000 new homes over ten years.
- Supporting 4,000 people into work annually.
- Helping 15,000 young people to get a better start in life.