A COMPANY which runs two housing groups has been given a positive credit rating.

Connexus was created 12 months ago when Herefordshire Housing Group and Shropshire Housing Group merged.

On October 18 it had its Baa1 credit rating reaffirmed and the outlook increased from stable to positive.

A Baa1 rating is the eighth highest rating in credit rating agency Moody's long-term corporate obligation rating and says the company is subject to moderate credit risk.

Duncan Forbes, interim CEO, said: “The positive rating is reflective of the stability in our strong financial metrics, which are set to remain strong into the future, as well as our very strong performance within the social housing business.

"In a short time at Connexus I have been able to see the strength of the organisation and the leadership team here. The pace of change and the outlook is very positive for us and we have an exciting future ahead.”

Ruth Cooke, chairwoman of the Connexus Board, said Connexus has outperformed their business plan through cost control, regular monitoring and scrutiny.

She added: "Our social housing operating costs are lower than anticipated and it is encouraging that Moody’s could see the strong projections within our future plans."

Connexus plans to build 476 homes over the next two years across Herefordshire.

Key current schemes within the county include the Blackfriars Street development in the centre of Hereford where the organisation is building 51 homes and at the former Ship Inn with the development of 35 homes. These sites comprise of affordable and private rented homes.