Thrive Homes responds to S&P Global rating update with confidence in long-term resilience
S&P Global published their decision on 12 February 2025, to adjust Thrive Homes’ long-term credit rating from A+ to A (outlook negative). This change reflects the significant investment we are making in the quality and safety of existing homes, alongside plans to deliver more, much-needed affordable housing.
Over the past two years, Thrive has substantially increased investment into our existing homes - strengthening building safety, improving energy efficiency, and accelerating stock condition surveys. Notably 88% of homes already meet EPC C or above, placing us well ahead of the Government’s 2030 target and helping reduce energy costs for our customers.
This essential programme of work - alongside plans to deliver more debt-funded new development - has naturally placed pressure on short-term financial metrics.
Despite these challenges, Thrive remains a financially resilient organisation with strong demand for our homes, low vacancy rates, and a clear strategy for managing costs and maintaining liquidity. S&P Global has highlighted the stability of our core social housing business, the predictable nature of rental income, and our continued access to government-backed support mechanisms available to the sector.
Ongoing merger discussions with Watford Community Housing further demonstrate a proactive approach to strengthening long-term capacity. A combined organisation would benefit from greater scale, shared expertise, and potential efficiencies, supporting continued investment in safe, modern, energy efficient homes.
Barry Wears, Interim Executive Director for Finance at Thrive Homes said:
“We remain confident in our long-term financial strength and our ability to continue investing in the quality, safety and sustainability of our homes.
Our focus is on delivering for our customers while managing our resources responsibly. We will continue to take a measured, disciplined approach to development and cost control, ensuring Thrive remains a stable and resilient organisation.”