S&P Global Ratings (S&P) has reaffirmed our A+ credit rating with a negative outlook following legal merger of Settle Group and Paradigm Housing Group and our successful acquisition of almost 3,500 homes from L&Q.
S&P noted that our margins remain above the average of peers it assesses. Our rating reflects S&P’s view that management will remain strong and focused on integrating legacy Settle and Paradigm to deliver financial merger value. The negative outlook reflects reduced financial headroom following the merger and South Bucks acquisition, which could be partly restored as benefits are realised. S&P also highlighted strong demand for our properties and our very strong liquidity position.
S&P Global Ratings (S&P) has reaffirmed our A+ credit rating with a negative outlook following legal merger of Settle Group and Paradigm Housing Group, and our proposed acquisition of almost 3,500 homes from L&Q.
S&P in its report noted our strong liquidity position, strong market position with Settle bringing in a similar stock profile and geographic exposure as Paradigm. S&P also highlighted the group’s management as strong, underpinned by a track record of proactive asset management and appropriate cost containment. It was also noted that the merger with Settle and announced acquisition of units from L&Q will generate some additional pressure on financial metrics. S&P anticipates that SettleParadigm’s adjusted EBITDA margins will strengthen through fiscal 2028, bringing them in line with Paradigm on a stand-alone basis.
S&P has placed our A+ rating on CreditWatch with negative implications following on from the announcement of our proposed partnership with Settle Group and our proposed acquisition of almost 3,500 homes from L&Q Group.
Nicola Ewen, Paradigm Chief Financial Officer commented, “In the lead-up to these announcements we undertook, and continue to undertake, the due diligence to have confidence in these proposals. As such, this announcement from S&P was expected and comes as no surprise. We’ve done our own detailed planning and analysis and we have already considered any potential decisions by S&P in our business case. We’re also confident that as plans progress, we can overcome this position.”
Paradigm Maintains A+ credit rating with S&P
S&P Global Ratings (S&P) has reaffirmed our A+ credit rating with a negative watch following on from the announcement of our proposed partnership in March 2025 with Settle Group and our proposed acquisition of almost 3,500 homes from L&Q. S&P are likely to resolve the CreditWatch placement over the coming months once they receive more information and confirmation that the merger and stock acquisition are likely to be completed.
S&P in their report noted our strong liquidity position, continued focus on core social housing with open market sales exposure contained in one joint venture and a modest development pipeline, helping to limit our debt funding requirement and contain any material impact on our debt metrics. Although noting that the announced acquisition of units from L&Q will generate some additional pressure in the short term.”
A financial health check by the Regulator has confirmed our G1/V2 rating for Governance and Financial Viability.
These regulatory ratings were last updated in May 2026. Please click here to view the latest judgement.
