On 7th October 2025, S&P Global Ratings (S&P) affirmed their long-term issuer credit rating on Hexagon Housing Association at ‘BBB+’. The outlook is stable. They also affirmed their long-term issue rating on Hexagon’s £250 million senior secured bond at ‘BBB+’.
S&P stated their overview of Hexagon’s position:
- Gradual improvement in housing quality will likely result in stronger financial metrics by fiscal 2028.
- The stable outlook reflects our view that rising revenue will mitigate the pressure on Hexagon from its investments in existing homes.
- While management is proactively taking cost containing measures, plans to address building safety have reduced financial headroom.
- We view Hexagon’s liquidity as strong based on our estimate that its ratio of liquidity sources to uses over the next 12 months will be about 1.4.
Hexagon’s Finance Director, Ali-Jarar Shah said “Hexagon continues to operate in a challenging environment, we have prioritised stock investment to ensure all building safety issues are addressed and that our properties continue to remain safe for all our residents.
Our strategy remains the same, we will continue to increase our stock numbers and ensure that income continues to grow. The initial development programme is expected to be modest, but it will grow in the forthcoming years as our financial position continues to improve.”
If you have any specific questions about this latest ratings report, please contact Ali at ajshah@hexagon.org.uk.
Read the full S&P Ratings report here.
On 30th October 2024, S&P Global Ratings (S&P) affirmed their long-term issuer credit rating on Hexagon Housing Association at ‘BBB+’. The outlook is stable. They also affirmed their long-term issue rating on Hexagon’s £250 million senior secured bond at ‘BBB+’.
S&P stated their overview of Hexagon’s position:
- We anticipate the financial performance of Hexagon Housing Assn. (Hexagon) will recover, albeit more slowly than previously expected.
- We think rental revenue will outpace costs, while building safety costs will gradually reduce.
- We note the group is taking actions to lessen financial pressures, including cost controls, as
well as phasing out new homes development, which should lead to no further debt funding
requirement in the next 2-3 years. - We affirmed our ‘BBB+’ long-term issuer credit rating on Hexagon and maintained the stable outlook.
Hexagon’s Finance Director, Ali-Jarar Shah said “Hexagon, together with the sector, is operating in a very challenging environment and we acknowledge that significant resources have been allocated to ensure that our properties remain safe for all our residents.
We will continue to increase our stock and ensure that income continues to grow. The initial development programme is expected to be modest, but will grow in the forthcoming years as our financial position continues to improve.”
If you have any specific questions about this latest ratings report, please contact Ali at ajshah@hexagon.org.uk.
Read the full S&P Ratings report here.
29th March 2023 – Hexagon today announces that following a stability check and reactive engagement, the Regulator of Social Housing (RSH) has regraded our Governance grading to a compliant grading of G2 and has maintained our Viability grading at V2. The review can be found on the RSH site: https://www.gov.uk/government/publications/regulatory-judgement-hexagon-housing-association-limited/current-regulatory-judgement-hexagon-housing-association-limited-29-march-2023
Hexagon accepts the G2 compliant regrade, as we acknowledge the need for improvement and are already making changes within the organisation. A summary of these changes are outlined below.
- Hexagon self-referred its data quality issues on landlord health and safety, rents and repairs to the RSH and commenced the automation of key processes to help improve data quality.
- Hexagon has also made considerable progress in reducing a backlog of fire risk assessment safety works and electrical installation inspections. The remaining fire risk assessment works largely fall into the low-medium risk category.
- A new complaints investigation team has been appointed and trained to provide robust independent assessment of all complaints and response within published timeframes. We believe residents will see an improvement in complaints handling and first-time resolution in 2023.
- The Board has approved a new corporate strategy centered on core services to customers. Within the first two years of this plan, the priority will be to turn around under-performing services, update our systems, improve the scope and quality of our data, make better use of our assets, complete our committed development programme, and improve our overall financial health in the face of the serious challenges the whole sector is facing.
We will work closely with the regulator to keep our progress under review as we work towards a return to G1. Hexagon remains committed to investor engagement and transparency and, to the extent that you have any specific questions, please contact: Ali-Jarar Shah, Finance & IT Director, ajshah@hexagon.org.uk
24 March 2023 – S&P Global Ratings (S&P) issued a Ratings Update for Hexagon Housing Association Ltd (Hexagon), lowering its long-term issuer credit rating to ‘BBB+’ from ‘A-‘, outlook stable. At the same time, S&P lowered its long-term issue rating on Hexagon’s £250 million senior secured bond to ‘BBB+’ from ‘A-‘.
The economic conditions in which English social housing providers operate remain challenging and Hexagon is not immune to the UK’s high levels of inflation, elevated interest rates and difficulties in the construction sector. We note S&P’s observation that Hexagon is “likely to be able to contain costs relating to investments in existing stock and that development of new homes will be contained such that the group’s debt metrics will marginally improve toward the end of our three-year forecast period, while liquidity remains strong.”
We remain firmly committed to our existing and future tenants, the local community, and the environment. Our residents are at the heart of our business: our investment in existing assets is critical and remains a key objective of our corporate strategy.
In April 2022 we issued a £250m senior secured bond, due 2048, at a coupon of 3.625%. The transaction materially improved our interest rate and liquidity risk profiles. The S&P Global’s Research Update can be found here S&P Global – Rating at 24 March 2023
Hexagon remains committed to investor engagement and transparency and, to the extent that if you have any specific questions, please contact: Ali-Jarar Shah, Finance & IT Director – ajshah@hexagon.org.uk.