Defence Housing Authority's (DHA's) rating reflects its supportive relationship with the Australian Commonwealth government, for both revenues and debt funding. DHA's strong stand-alone credit quality is backed by healthy operational performance driven by a relatively stable and predictable revenue stream and an adequate financial position. DHA has an important role in the delivery of Defence's operations and there are a number of close linkages with the Commonwealth (for example, all debt is borrowed from the government rather than the private sector. Therefore, Standard & Poor's directly links DHA's credit standing with the Commonwealth's. However, DHA's rating is not equated with the Commonwealth's because there is no formal guarantee and DHA provides a commercial rather than social not-for-profit service. Underlying credit
