S&P Global Ratings has said it could raise the credit rating of troubled Octavia Housing’s credit rating if a merger with 50,000-home Abri goes ahead.

The statement from the credit rating agency follows last week’s announcement that Abri is in discussions about a possible deal to take over Octavia, which is currently non-compliant with the Regulator of Social Housing’s governance and financial viability standard because of its poor financial planning and ‘unrealistic budgets’.