The ratings on Defence Housing Australia (DHA) reflect the Australian government's ownership and oversight of DHA (from which it sources 100% of its borrowings), its relatively stable and predictable revenue streams, and DHA's key support role for Defence. These are partially offset by an exposure to the residential property market and a capital program that relies on the success of the ongoing sale and leaseback investment product and surplus property disposals. DHA has a close relationship with the Australian government--a factor underpinning DHA's credit quality. All of DHA's borrowings are sourced through the government, and DHA's exposure to refinancing risk is limited. In addition, the Australian government has a strong system of regulatory oversight. For example, DHA's borrowings require approval
