The ratings on Defence Housing Authority (DHA) reflect its close relationship with its major customer and owner, the Commonwealth of Australia (local currency, triple-'A'/Stable/'A-1'-plus; foreign currency, double-'A'-plus/Stable/'A-1'-plus), and a history of efficient provision of high-quality housing to tenants. The rating is constrained by an expected slight weakening of DHA's existing extremely strong debt position. DHA's relationship with the Commonwealth of Australia, through the Department of Defence (Defence), is a key rating factor. The strength of this relationship is evident in several ways: The customer-supplier relationship is important to both parties, with Defence providing more than 95% of DHA's operating revenue and DHA providing about 90% of Defence's outsourced housing requirements; The recent signing of a Services Agreement between Defence and
