The HCAhas downgraded 2,200-home housing association over ambitious development plans and residential care exit.
In a regulatory judgementthe HCA ranked Central & Cecil (C&C) as G2 for governance and V2 for viability after reviewing its plans.It said the HA must“strengthen its existing risk management framework to ensure it can evidence a more strategic approach to the monitoring and management of risk”
and “This is particularly important as C&C has to manage significant new risks associated with its change programme.”
The HCA stated: “There is a high level of interdependency between the various phases of the change programme. These represent a material financial exposure and the board will need to monitor and manage C&C’s development, sale and residential care exit plans closely to ensure that the presenting liquidity risks and the risk of any financial covenant breach are adequately mitigated.”