S&P has affirmed its rating for Bromford Flagship LiveWest Limited (BFL) as A+ with a Stable outlook, the same as previously held by Bromford Flagship. In its report, S&P highlighted BFL’s approach to cost containment and balanced asset investment programme, stating: “The affirmation reflects our view that the group’s credit metrics will strengthen thanks to adequate cost control, despite any integration pressures from the addition of LiveWest as an operating subsidiary.”

The report went on to say: “We expect that the merged entity will leverage its additional capacity to develop more homes, but we believe that the impact on the debt metrics will be contained by efficient cost control, high levels of grants, and a low average cost of debt relative to peers.”

Moody’s has also affirmed its A2 Stable rating for BFL, retaining the position previously held for both the Bromford Flagship and LiveWest groups. Moody’s noted that BFL’s size “provides a strong ability to absorb shocks and gives it a robust market position and strong political influence.”

Like S&P, Moody’s emphasised the group’s robust cost control, stating: “BFL has good buffers in the form of very strong margins, solid interest cover metrics and high liquidity. Moreover, the organisation has a strong track record of cost control as demonstrated by the stability of its margins through the last five years despite rising
spending pressures.”