Wheatley Group issued with credit downgrade in light of Brexit ‘uncertainty’

The International ratings agency cited the “increasing political uncertainty” which has followed the UK’s decision to leave the EU for lowering its long-term ratings on the Wheatley Group, and its largest subsidiary Glasgow Housing Association, to A+ from AA and placed both on a ‘negative credit watch’.

In its judgement S&P said: “The lowering of our rating on Wheatley reflects our view of increasing political uncertainty and weakening institutional arrangements in the UK, of which Scotland is a part.”

S&P warned of the possibility of a further downgrade should it anticipate an adverse impact on Wheatley from “much weaker intergovernmental relations in the UK”.

The downgrade comes two weeks after the same credit agency raised Wheatley’s rating from an AA- to an AA, citing its “expansion into strong markets” and its “importance to the Scottish Government”.

Wheatley Group has declined to comment.