As at 31st March 2016 bpha held a credit rating of AA- (Stable) from Standard & Poor’s (S&P), this being the same as our debut rating published in September 2013, and subsequent rating reviews thereafter. This rating was based upon our stand-alone credit profile (SACP) of A+, which was then uplifted by one notch to reflect the likelihood of receiving extraordinary government support.
Following the results of the UK’s European Union referendum held on 23 June 2016 and the decision to exit the EU, the UK lost its AAA status and S&P removed the one notch uplift previously widely applied to the sector. Accordingly on 4th July 2016, bpha was one of many associations whose rating was lowered, in our case to our SACP which remained unchanged at A+. This credit rating was re-affirmed by S&P in late July 2016 as part of their annual review process, with the highlights of this report being as follows:
- very strong enterprise profile from strong economic fundamentals and excellent asset quality
- strategy and management are assessed as very strong
- a rating that reflects bpha’s very strong internal liquidity
- risk management standards that are comprehensive following the reduction in exposure to stand-alone derivatives
A copy of the 2016 report is available for download.