BRIDGE Housing announced today that S&P Global Ratings has upgraded the company’s credit rating to AA from AA-, earning it the highest rating assigned to a nonprofit housing provider.

S&P cited “extremely strong” management, financial performance, and debt profile in raising BRIDGE’s issuer credit rating and long-term rating on the company’s outstanding debt to AA, while maintaining a stable outlook. The credit rating agency noted that BRIDGE remains a “market leader” and expressed confidence in its stable, highly experienced management team and its ability to successfully execute its 2024-27 strategic plan, which targets adding 5,100 affordable housing units on the West Coast.

In summarizing the rating upgrade, S&P focused on BRIDGE’s:

  • Extremely strong management and a strategic plan that supports the corporation’s mission to provide quality low-income housing in the least affordable markets
  • Very strong enterprise risk profile, supported by our assessment of strong market position, low industry risk and extremely strong management and governance
  • Extremely strong financial risk profile supported by extremely strong financial performance, an extremely strong debt profile, and extremely strong liquidity ratios
  • Ability to generate revenue streams from in-house development, a newly formed joint venture, and from the impact fund that has had substantial success mobilizing capital

The agency noted that demand for low-income housing remains extremely strong in BRIDGE’s markets and said it expects the organization to “continue to employ an excellent strategic planning process, a proactive business model, and maintain the flexibility to address affordable housing needs.”

“This upgrade reflects BRIDGE’s strong fundamentals and financial discipline as we accelerate our work to create and preserve long-term affordable housing in high-cost West Coast markets,” said BRIDGE Housing President and CEO Ken Lombard. “We appreciate S&P’s confidence in our ability to advance our mission and the support this rating will provide as we continue to pursue market-based finance that doesn’t rely on public subsidies.”

Last year, BRIDGE and Avanath Capital jointly created Brighthaven Communities to provide industry-leading property management services for affordable and workforce housing communities nationwide. BRIDGE also launched the BRIDGE Housing Impact Fund aimed at investing $1 billion to acquire, preserve, and create affordable and workforce housing. Since its $92.25 million first close in March, the fund has completed three acquisitions totaling 354 units, and a second funding close is anticipated by the end of 2026.

BRIDGE has long been a capital markets pioneer, including being the first nonprofit housing developer to receive an S&P rating and, in 2020, to issue taxable general-obligation bonds. Last year, BRIDGE completed its second Social Bond issue, increasing the offering to $175 million from a planned $150 million due to strong investor demand. In its report, S&P also noted that BRIDGE is “extremely effective at leveraging partnerships with lenders and other stakeholders” to develop revenue sources outside of traditional affordable housing finance.

“Diversifying our funding sources is integral to achieving our strategic plan goals, and our rating upgrade will strengthen investor and lender confidence to support this mission,” said BRIDGE Chief Financial Officer Erik Lund. “Credibility in financial markets has been a hallmark of BRIDGE for 43 years, and we are constantly pursuing innovative ways to deliver housing that helps close the affordability gap.”

The full S&P report is available here.

About BRIDGE Housing

BRIDGE Housing Corporation is a leading nonprofit owner, developer, and manager of high-quality affordable housing on the West Coast, with a mission to strengthen communities and improve lives. Founded in 1983, BRIDGE Housing has participated in the creation of more than 24,000 affordable homes in California, Oregon, and Washington, with a total development cost of $7 billion. Its current $4.8 billion portfolio totals about 15,500 apartments that are home to nearly 35,000 residents, and thousands more units in the development and acquisition pipelines. For more information, visit bridgehousing.com.

Media gallery

About The Author
Business Wire