Standard and Poor’s (S&P) Global Ratings, the largest rating agency in the country, has assigned its AA- credit rating to MidPen Housing, one of the largest non-profit developers and managers of high-quality affordable housing in Northern California. The high credit rating will provide a critical new source of corporate financing to empower MidPen to more fully achieve its mission to create affordable housing for those in need and stability and opportunity in residents’ lives.
MidPen is now the highest-rated non-profit developer in the country and joins other organizations in the strong financial AA- rating class such as Amazon, Nike, Prudential, and the State of California. The S&P credit agency cited the following in assigning the AA- rating:
- Extremely strong management with experienced leadership staff and a dedicated board of directors
- A multi-year strategic plan with measurable goals that support its mission, core values, and guiding principles
- Very strong enterprise risk profile and financial risk profile
- Proven commitment to low-income social housing development, management, and resident services programming, a robust building pipeline, strong community partnerships, and ability to fulfill strategic priorities that will support fiscal and operational performance that align with the rating
“We are thrilled that S&P affirmed MidPen’s financial capacity and commitment to long-term housing investment,” said Mick Vergura, Chief Financial Officer for MidPen Housing. “This AA- S&P rating will expand access to new and innovative capital strategies while stewarding the organization towards long-term growth and sustainability.”
The S&P rating is a credit score that describes the general creditworthiness of a company, city, or country that issues debt, designated by a letter grade from AAA to D. MidPen’s AA- rating is considered “investment grade, with a very strong capacity to repay” and remains valid for one year, with an annual update process to extend the rating for future years. The new rating will provide MidPen Housing with the financial flexibility to pursue its key initiatives as outlined in its five-year strategic plan.