The ratings on the Defence Housing Authority (DHA) reflect a strongly supportive relationship with its parent, the Commonwealth of Australia (AAA/Stable/A-1+) and a strong stand-alone credit quality. Stand-alone credit quality is strong because about 98% of DHA's operating revenue comes from the Department of Defence. Although this customer concentration raises some concerns, this is offset by Defence's credit strength and the 10-year risk-sharing agreement with Defence, which commits Defence to a long-term agreement with DHA and assigns to DHA only those risks in which it is a strong position to manage. Within this single-customer dominance, DHA is expanding operations by offering Defence relocation services and hopes to participate in Defence's recently announced single-member accommodation program. Success in tendering to provide
