In its latest report, the agency which rates the financial position of organisations across the UK, highligted Jigsaw Group’s strong financial metrics and risk-averse financial management along with the Group’s increased development ambitions.
The negative outlook reflects the high exposure to weaker economic and financial conditions in the UK. A 7% ceiling on social rent increases in England combined with high cost inflation and sizeable levels of mandatory expenses (quality, fire and building safety, decarbonisation) will weigh on operating margins over the next 12 to 18 months. This could be worsened by additional below-inflation caps on social rent increases. At the same time, higher interest rates and tightening financing conditions will further weaken interest coverage ratios. Further declines in home prices and sale volumes in the UK could affect HAs’ profitability and surpluses from market sales and further weaken their credit profile.
You can read the full report using the link below:
