Swan Housing Association has had its credit rating lowered to BB- by S&P Global, with the company citing that it reflects “our estimate of its much-weakened financial standing and our view that its access to the market is limited at the moment”.

The organisation was due to merge with Orbit Group but talks broke down this month. Sanctuary Housing have since offered to step in.

In the judgement by the credit ratings agency, it says: “In our view, there is a high risk that if Swan does not manage to secure external support, its ability to service its financial obligations will be impaired. Balancing this risk is the likelihood of a timely completion of the partnership with Sanctuary Housing, which could improve Swan’s financial standing.”

The organisation has also been placed on CreditWatch, meaning that “Swan’s credit quality could deteriorate further over the
next three months”.

For more on the downgrade, please see the full judgement here.