STADGENOOT RATED ‘AA STABLE’

Press Release October 12, 2011

Standard & Poor's impressed by Dutch Housing Association.

Is the conclusion of the international, independent rating agency Standard & Poor's (S&P) after thorough investigation of the creditworthiness of Stadgenoot. They assess the credit quality of Amsterdam based Housing Association as "AA" with a stable rating outlook. This is the third-highest assignable rating. Stadgenoot is the first Housing Association in the Netherlands to be rated.

Impressed
Two factors were crucial for providing the rating, AA stable. S&P is impressed with the financial strength of the system of social housing in the Netherlands in general and the situation in Amsterdam, with its pressure on the housing market. In addition, the management and governance of Stadgenoot was viewed as solid. Stadgenoot has shown its policy to be able to constantly make adjustments when external conditions change. That happened in mid 2008 when Stadgenoot decided very early to cut back sharply its investment portfolio. Our action preceded the collapse of Lehman Brothers, the closure of international capital markets and subsequent collapse in the demand for new homes.

Why a rating?
Housing associations borrow money to build and for project development purposes.
These loans are guaranteed by the Social Housing Guarantee Fund (WSW). With this assurance Housing Associations can borrow money cheaper than commercial parties.
New European policy states that for competitive reasons that this assurance may be only be used for non-commercial activities. This is a setback for the social housing sector, because Housing Associations are also developing commercial activities, to raise the quality of some assets and neighbourhoods. Housing Associations may need to access external sources of financing, for example International Capital Markets, to support Commercial activities. The cost of financing in the International Capital Markets is determined by the creditworthiness of the party who wants to borrow. The rating from S&P gives Stadgenoot the possibility to  access the capital markets to support investments in its estate.

Housing system intact
The rating is a recognition of the thoroughness and quality of operations and financial position of Stadgenoot. "This is very good news. Not only for Stadgenoot, but for the entire sector", said Gerard Anderiesen, chairman of Stadgenoot. "In recent years Housing Associations were often in a negative light in media and politics. Standard & Poor's judges that Stadgenoot is a healthy company operating within a housing system that is good and consistent. Let's be careful the way we handle the future of this social housing system that has been created in the Netherlands during the past 100 years.

Links

Full analysis Standard & Poor's

Research Update Standard & Poor's

Annual Report 2010: Financial Statements

Annual Accounts 2010: chapter 7

Stadgenoot Presentation

For more information, please see: www.standardandpoors.com