S&P praised THFC’s risk management and governance structures, which it said will allow the aggregator to maintain a strong financial risk profile despite challenging economic conditions.

In its analysis, the ratings agency noted the low industry risk of the UK social housing sector, with which THFC has a loan book of more than £8 billion.

The rating represents a vote of confidence in THFC as a key funding partner to the sector during this period of high inflation and a potential rent cap due in the coming months.

S&P noted that these factors could lead to a weakening credit quality in the UK social housing sector but said that THFC’s risk management policies will allow it to mitigate these pressures.

It comes shortly after S&P moved the UK sovereign credit rating to a ‘negative’ outlook following the mini-Budget set out by Chancellor Kwasi Kwarteng last week.

Piers Williamson, chief executive of THFC, said: “At a time when rating agencies generally are examining both the macro and the micro of housing associations, this represents a big vote of confidence.

“I don’t think anyone of us are under any illusions that the next months will be tough generally, but particularly for housing associations and their customers.

“For our ‘A’ Stable rating to be affirmed is a testament to our strength and should differentiate us increasingly as other credits come under pressure.”