S&P has reaffirmed its rating for Bromford Flagship Limited as A+, the same as previously held by Bromford. Its report stated: “We affirmed the rating on Bromford Flagship because we assess that, despite short-term pressures from the integration of Flagship, the group's credit metrics will remain resilient because of controlled costs and potential synergies.

We understand that both Bromford and Flagship elected to merge to increase operational and financial capacity, which we believe will result in sustained growth through higher development output.”At the same time Moody’s has given Bromford Flagship Limited an A2 rating, reaffirming the position it had previously given to both the Bromford and Flagship groups. It also confirmed its outlook for the newly merged organisation was stable.

In making its decision Moody’s highlighted Bromford Flagship’s “large size, which will support a higher capacity to absorb shocks and give it robust market position, strong political influence and a competitive edge in development opportunities.”

In addition, Moody’s say the affirmation of the ratings “is supported by the limited credit impact of the merger given the similarities between the standalone credit profiles of the two entities. We expect Bromford Flagship to retain strong margins and interest cover ratios.”

Matthew Rose, Director of Treasury at Bromford Flagship said: “Achieving these sector-leading ratings so soon after the merger from both S&P and Moody’s is an important step in demonstrating that both agencies recognise the financial strength that has been created through the merger.

“The ratings will give us the confidence to return to the markets later in the year to seek additional funding from investors who are interested in supporting our journey to build 2,000 homes every year for the next 30 years and enabling even more customers to thrive in a Bromford Flagship home.”

Earlier this week Bromford Flagship announced it had secured a new £100m Revolving Credit Facility with RBC, securing its first funding since its merger.

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S&P Ratings Report

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