This report does not constitute a rating action. Overview Enterprise profile Financial profile Hexagon Housing Assn. Ltd.'s small size constrains flexibility, despite strong demand for its properties in Southeast London. Investment in existing homes will continue to pressure financial metrics. Low rent relative to market rates supports strong demand for Hexagon's London-based properties. We expect spending on repairs and maintenance, once the currently high levels for higher-risk high-rise buildings are complete, will moderate but limit financial improvements. The focus on general needs housing with limited sales exposure generates a predictable income stream. The debt burden remains elevated, although the group is phasing out new developments. While management is proactively taking cost containing measures, plans to address building safety have reduced
