There is uncertainty over the impact of changes in S&P's grading methodology on UK housing associations

For non-US public purpose entities, the ratings agency is proposing to consolidate the criteria it applies to its ratings into a single overarching framework.  In response, James Tarrant of Savills Financial Consultants told Social Housing that the proposed methodology changes were “broadly supportive” for the sector and might better reflect housing associations’ public policy role and governance.  However, they could increase differentiation between providers so more proactive engagement with ratings agencies is expected to be required.  On the other hand, Jamie Thorn of Altair told the publication that the change could lead to more downgrades due to an ongoing weakening of quantitative metrics across much of the sector.