News

The Regulator of Social Housing has today downgraded Flagship Group’s governance rating from G1 to G2. The Regulator has confirmed its existing V2 grade for viability and that Flagship complies with the financial viability element of the Governance and Financial Viability Standards and that its financial plans are consistent with and support our financial strategy, continuing to meet our financial covenants.

A rating of G2 is compliant and means that Flagship meets the Regulator’s governance requirements but needs to improve some aspects of its governance arrangements to support continued compliance. At a time where there is economic uncertainty in relation to inflation and interest rates, extra headroom to meet covenants are required, particularly as it delivers a significant development and sales programme.

Commenting on the rating, Peter Hawes, Chairman said: “Flagship is pleased that it continues to meet the governance standard. The feedback recognised our strengths and highlighted areas that need strengthening including stress-testing, Board oversight and assurance to ensure we can manage risk in line with our risk appetite.

“We will now work with the regulator, the board, our staff and tenants to further strengthen our governance arrangements with many processes already in place.

“The need for affordable, safe homes has never been greater. Our vision to eradicate the housing crisis remains the same and this level of scrutiny helps in assuring our publics that we are, rightly so, operating in a tightly regulated sector.”

For more information: please email: commsteam@flagship-group.co.uk