Affinity Sutton Capital Markets PLC Update to investors (3854Z)

TIDM51GC

RNS Number : 3854Z

Affinity Sutton Capital Markets PLC

14 March 2017

Update to investors

14 March 2017

Yesterday evening Moody's published an 'issuer in-depth analysis' covering Clarion Housing Group. The paper, titled "Growth Ambitions Will Increase Debt, Exposure to Market Sales", seeks to provide further analysis following the Credit Opinion published on December 22(nd) 2016.

In response, Clarion Housing Group Chief Executive, Keith Exford, said:

"Having successfully completed the merger, our strategy for growth is carefully balanced to deliver new homes to those in housing need while strongly maintaining our core business and financial strength."

Mark Washer, Chief Financial Officer at Clarion Housing Group said:

"Stock rationalisation is a fundamental part of our growth strategy, as it will generate capital receipts to reduce the upward pressure on debt and maintain gearing at relatively modest levels. Moreover, our Financial Golden Rules provide a robust, prudential framework to maintain our long-term financial resilience and strength. These rules ensure that we maintain a prudent level of debt and safeguard our capacity to service it. For example, we will not invest more than 20% of the housing association's reserves into the commercial arm, Latimer.

"We have a strong track record of successful mergers and our size means we can benefit from economies of scale. We have a substantial balance sheet, strong operating margins and good liquidity supported by strong, unencumbered assets."

ENDS

For further information please contact:

Anna Upton, Head of External Relations, Clarion Housing Group on anna.upton@clarionhg.com or 07977 285 443

This information is provided by RNS

The company news service from the London Stock Exchange

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March 14, 2017 04:48 ET (08:48 GMT)

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