Long-term service agreement that also codifies Defence Housing Australia's obligations and risks with its major customer and owner, the Department of Defence (Defence) Highly rated revenue counterparty (Commonwealth of Australia; unsolicited ratings AAA/Negative/A-1+) that supports DHA's operating stability Ownership and interaction with the Commonwealth of Australia and its strategic importance to Defence Exposure to the cyclical residential property market Strong liquidity, with credit lines and borrowings provided by the Australian government Sizable off-balance-sheet liabilities associated with operating lease commitments Risks associated with sale-and-leaseback of developed housing, and surplus property disposals to fund its capital program The negative outlook on Defence Housing Australia (DHA) reflects that on the Commonwealth of Australia and our expectation that DHA will remain the government's primary
