A credit agency has changed the outlook for all the housing associations it rates to negative following the vote to leave the EU last week.
Moody’s changed the outlook on 55 government-related organisations in the UK this morning, after altering the UK’s overall credit outlook to negative.
These entities include local authorities, universities and 42 housing associations, as well as a number of subsidiary bodies and vehicles.
A negative outlook means a credit downgrade is likely in the future. Credit ratings are crucial in securing finance at cheap rates, particularly on the capital markets.
Standard & Poor’s, which also has a number of housing associations in its portfolio, downgraded the UK’s overall credit rating from AAA to AA yesterday as a result of the vote.
A spokesperson was unable to comment on what this would mean for associations,