RPT-Fitch Publishes Sector Credit Factors for Social and Affordable Housing
(Repeat for additional subscribers)
Sept 12 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has published a sector-specific special report describing the credit factors the agency uses to analyse social and affordable housing entities outside of the US. These sector-specific credit factors elaborate on revenue supported rating criteria.
Fitch evaluates social and affordable housing entities considering various qualitative and quantitative credit factors, including but not limited to: governance and management; operating profile and efficiency; financial profile; and public funding. Where there is strong regulatory oversight and/or tight legal and financial link between the entity and the government, Fitch may also use its public-sector entities criteria to rate the entity.
In its new special report, Fitch has placed the various building blocks used to formulate its ratings within typical ranges to increase the transparency of its analysis. The report includes various median financial ratios by rating category, as well as charts that demonstrate how key qualitative factors can affect a typical rating range.
Social and affordable housing entities can be rated, on a standalone basis, in the range of 'A' to low investment grade. Although these institutions are generally not-for-profit and therefore would tend to report narrow operating margins and break-even net income and have high leverage, the sector risk assessment considers that their operating performance and cash flow generation are underpinned by stable public-sector funding and strategic role.
The special report is available at www.fitchratings.com or by clicking on the link below.
Link to Fitch Ratings' Report: Social and Affordable Housing
- Obama and Castro shake hands, Zuma humiliated at Mandela memorial |
- Google bus blocked in San Francisco gentrification protest
- Reporter can keep sources secret in Colorado theater shooting: court
- Couple, four children missing in Nevada found safe in canyon
- Regulators seek to curb Wall St. trades with Volcker rule |