Watchdog Criticised Over Financial Ratings

The watchdog overseeing housing associations in England has come in for criticism from MPs. Select committee chairman Clive Betts said the Homes and Communities Agency's reluctance to downgrade associations' financial viability meant "nobody would have a clue" if they were in trouble.  All but one of England's housing associations were downgraded by the ratings agency Moody's in May. Moody's said the move was prompted by a "reassessment of the likelihood" of a financial bail out from the government. But despite the mass downgrade, industry regulator the HCA gave only one housing association - the Cosmopolitan Housing Group - the lowest V4 financial viability rating. Mr Betts, chairman of the Communities and Local Government Select Committee, said this "amounted to a futile exercise in locking the stable door long after the horse had bolted". Read more on the BBC website.