Octavia on S&P CreditWatch with positive implications

Following the announcement on 22 November 2023 that Octavia Housing is exploring options for a formal partnership with Abri Group, S&P Global Ratings have placed their 'BBB' rating on Octavia on CreditWatch with positive implications to reflect that they could raise their rating on Octavia if the transaction takes place.

The CreditWatch placement reflects their view that Octavia and Abri's potential partnership could result in a stronger credit profile for the combined entity than that of Octavia alone.

The transaction is still subject to board approvals and other considerations, including consent from lenders. They expect that synergies and economies of scale from the combined group's large asset base could help balance cost pressures. Furthermore, the business combination could improve Octavia's management and governance, in addition to changes and measures taken at Octavia's level already.

Octavia CEO Sandra Skeete commented: “We are pleased to have this positive response to Octavia’s decision to choose Abri as its preferred partner. While discussions are at an early stage, both parties are working hard to deliver the partnership.”