We anticipate the financial performance of Hexagon Housing Assn. (Hexagon) will recover, albeit more slowly than previously expected. We think rental revenue will outpace costs, while building safety costs will gradually reduce. We note the group is taking actions to lessen financial pressures, including cost controls, as well as phasing out new homes development, which should lead to no further debt funding requirement in the next 2-3 years. We affirmed our 'BBB+' long-term issuer credit rating on Hexagon and maintained the stable outlook. On Oct. 30, 2024, S&P Global Ratings affirmed its long-term issuer credit rating on Hexagon Housing Assn. Ltd. at 'BBB+'. The outlook is stable. We also affirmed our long-term issue rating on Hexagon Housing Assn. Ltd.'s £250
