Regulatory regrade for Connexus
Connexus has received a change of grading from The Regulator of Social Housing, following a Regulatory Judgement. The organisation’s financial viability rating will move from V1 to V2 while retaining its G1 rating for governance.
A V2 rating means Connexus still meets the regulator’s viability requirements and has the financial capacity to deal with a reasonable range of scenarios but needs to manage material risks to make sure it remains compliant with regulatory standards.
Connexus is one of a number of housing providers across the country to receive a regrade to its viability rating this autumn as the UK faces economic uncertainty and the possibility of an extended recession.
Richard Woolley, chief executive at Connexus said: “Although it’s disappointing to see our viability grading change, we understand the reasons and fully accept the decision. We will continue to work with the regulator to provide reassurance about our exposure to financial risks.
“Despite a gloomy financial forecast nationally, Connexus remains committed to investing in essential improvement work for existing homes and developing much-needed affordable housing across Shropshire and Herefordshire.
“We are acutely aware that those in our communities are facing a cost-of-living crisis, especially when it comes to soaring energy bills. Making sure our homes are energy efficient is therefore a key focus and we are working with our lenders to access the funding required to continue delivering on our plans.
“Our governance arrangements remain strong, and we welcome the regulator’s decision to retain a G1 governance rating for Connexus.”
You can read the latest Connexus regulatory judgement over on the Regulator for Social Housing’s website.
Regulatory judgements are required for all housing providers who own 1,000 homes for social housing. They are reviewed regularly and determine whether a provider is meeting the regulator’s governance and financial viability standards.