Leading social housing provider Stonewater has received confirmation of its A3 credit rating with a stable outlook from Moody’s Ratings, as the organisation reports increased income and operating surplus in its results for the six months to 30 September 2026.
The rating follows Stonewater’s strategic review of its external credit ratings and its decision to appoint Moody’s as its sole external credit rating agency. Moody’s confirmed the rating following an analytical process that included engagement with Stonewater’s executive team, providing the agency with additional information on the organisation’s financial position, management and future plans.
The analysis recognises Stonewater’s strong financial management, its scale and its continued focus on social housing. The assessment also reflects the wider financial pressures facing the housing sector, including increased investment in existing homes, repairs, building safety and energy efficiency.
The rating comes as Stonewater reports increased income and operating surplus in its results for the six months to 30 September 2026. Total turnover reached £160.7 million, while operating surplus increased by 12% to £44.2 million, demonstrating continued financial resilience and providing a strong platform for future investment.
Stonewater is entering a significant period of investment, having secured a record £350 million through the Social and Affordable Homes Programme (SAHP) and agreed a further £100 million funding package with Barclays in October. The increased grant support will help Stonewater deliver new affordable homes while managing the level of borrowing required and continuing to invest in the quality, safety and sustainability of existing homes.
The SAHP funding will support the delivery of 2,348 new homes, reinforcing Stonewater’s position as a strategic partner of Homes England, while the Barclays package provides additional long-term financial flexibility.
Jonathan Layzell, Chief Executive Officer at Stonewater, said: “Moody’s confirmation of our A3 rating with a stable outlook is an important endorsement of our financial management and the steps we’ve taken to maintain a resilient, sustainable organisation. It gives our partners and investors continued confidence in our ability to manage current pressures while investing for the long term.
“Our half-year results demonstrate that resilience, with increased income and operating surplus despite continued economic and sector-wide pressures.
“This is an important period for Stonewater. With £350 million secured through the Social and Affordable Homes Programme, we are well placed to deliver more affordable homes while continuing to improve our existing homes and services.
“We have made good progress, but we know there is more to do. With our strategic partnership with Homes England reinforced, everyone at Stonewater is working towards the same ambition: delivering the consistent, quality services our customers deserve and using our resources responsibly to make the greatest possible difference.”
Stonewater’s investment continues to focus on improving the sustainability and energy efficiency of its homes, helping to reduce their environmental impact and customers’ energy costs. Of its existing homes, 73.5% are rated EPC C or above, while all 246 new-build homes handed over during the period achieved at least EPC B, with 42% achieving EPC A.
The organisation also continues to hold G1 and V2 ratings for governance and financial viability respectively from the Regulator of Social Housing, alongside a C2 consumer grading. The results follow a period of change to Stonewater’s senior leadership and Board. Angus Michie succeeded Sheila Collins as Chair in October, while James Bradbury moved into the newly created role of Chief Investment Officer in June. Kirsty Spark will take up the role of Chief Financial Officer in November.
Stonewater also donated £250,000 to its charity partner, the Longleigh Foundation, in August, supporting its work to help customers experiencing financial hardship and other challenges to access practical support and build greater stability in their lives.