Wheatley Group issued with credit downgrade in light of Brexit ‘uncertainty’
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International ratings agency Standard and Poor’s (S&P) has downgraded its credit rating for Wheatley Group citing the “increasing political uncertainty” which has followed the UK’s decision to leave the EU.
The credit agency, which upgraded Wheatley and its largest subsidiary Glasgow Housing Association just last month, has lowered its long-term ratings on the Group and GHA to A+ from AA and placed both on a ‘negative credit watch’.
In its judgement S&P said: “The lowering of our rating on Wheatley reflects our view of increasing political uncertainty and weakening institutional arrangements in the UK, of which Scotland is a part.”
S&P warned of the possibility of a further downgrade should it anticipate an adverse impact on Wheatley from “much weaker intergovernmental relations in the UK”.
The downgrade comes two weeks after the same credit agency raised Wheatley’s rating from an AA- to an AA, citing its “expansion into strong markets” and its “importance to the Scottish Government”.
Wheatley Group was contacted by Scottish Housing News but declined to comment.
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