Moody's has downgraded the credit ratings of a number of housing associations, including Places For People. Nothing to be overly concerned about, but something else to be monitored, and for all bond holdings - especially those that are BBB or Baa rated, which are a few notches above being sub-investment grade, a.k.a. 'junk'.
The final terms documents for the PFP retail bonds stated that Aa3 ratings were expected, so a one notch downgrade would put them at A1 (so High Grade down to Upper Medium Grade).
Google FT headlines:
- Moody’s downgrades UK councils
- UK borrowing costs fall despite rating cuts
I think that the headline of the second article puts recent events into perspective rather nicely.
To be taken with as big a pinch of salt according to personal taste!http://en.wikipedia.org/wiki/Credit_rating