Moody’s affirmed the A2 long-term issuer rating of Jigsaw Homes Group Limited (Jigsaw) and the A2 senior secured debt rating of Jigsaw Funding plc. Jigsaw’s Baseline Credit Assessment (BCA) has also been affirmed at a3.
The outlooks for both remained stable, reflecting the group’s adequate gearing and sound financial management.
Jigsaw expects its operating margin to average 27% over the next three years, driven by additional rent revenue from development completions.
The Group’s development programme includes 3,435 units between fiscal 2025 and 2029. Of these, 71% are for social or affordable rent, 16% rent-to-buy, and 13% for shared ownership. The HA expects grant funding to cover 23% of its development costs, a credit positive as it limits debt funding.
Should the rent settlement be implemented, Jigsaw will benefit from above inflation rent increase, as the HA only incorporated CPI flat increases in its business plan beyond fiscal 2026. The operating environment for English housing associations remains supportive and demand for social housing is very high.
Moody’s credit opinion 07 February 2025 – Jigsaw Homes Group Limited >>
