Moody’s reaffirmed Southern Housing’s A3 stable credit profile yesterday, noting that the housing association’s large size, along with its robust balance sheet and strong liquidity, means that its credit challenges are well reflected at its current rating level.

The credit agency added that a significant amount of the 73,000-home housing association’s medium-term risk has been mitigated through the reduction of its development programme.

An A3 rating from Moody’s is a medium investment grade credit rating, signifying that the issuer is a relatively safe investment and at low risk of default. It is the seventh highest investment grade on Moody’s scale.