Upgrade reflects sustained financial strength, improved asset quality, diversified funding, and strong portfolio management
NeighborWorks Capital announced that S&P Global Ratings has upgraded the organization’s Issuer Credit Rating to AA- with a Stable Outlook from A+ with a Positive Outlook, recognizing the organization’s continued financial strength, improved portfolio performance, and disciplined execution of its long-term growth strategy.
The upgrade places NeighborWorks Capital among the highest-rated community development financial institutions (CDFIs) evaluated by S&P Global Ratings and reflects continued progress since receiving its inaugural issuer credit rating in 2024.
In its published report, S&P Global Ratings said the upgrade reflects NeighborWorks Capital’s “sustained financial strength…and continued strong management of its portfolio quality,” citing above-average capital adequacy ratios, a more diversified funding base, and improved asset quality.
“S&P’s Issuer Credit Rating upgrade reflects NeighborWorks Capital’s long-standing above-average capital adequacy ratios, as well as our significant efforts to broaden our business model and impact beyond traditional CDFI lending,” said Matt Glatting, Chief Financial Officer of NeighborWorks Capital. “This rating upgrade further supports our vision for NeighborWorks Capital Advantage Partners (NCAP), our collaborative initiative to help connect NeighborWorks organizations with capital, expertise, and strategic partnerships beyond traditional lending, while deepening our work as a service corporation to the NeighborWorks America network.”
Chief Financial Officer
NeighborWorks Capital
The S&P report highlights several areas of continued strength, including:
- Above-average capital adequacy, with a net equity-to-asset ratio that exceeds many rated peers
- Sustained improvement in asset quality, with delinquencies remaining below 1.5% of total assets following enhancements to underwriting and portfolio management
- A more diversified revenue base through the organization’s Low-Income Housing Tax Credit (LIHTC) Equity Fund, CDFI Fund awards, and other strategic funding sources
- Strong management and governance supported by experienced leadership and thoughtful strategic planning
S&P Global Ratings also assigned NeighborWorks Capital a Stable Outlook, reflecting its expectation that the organization will maintain strong capital levels while executing its strategic growth plan.
“Our view [is] that NeighborWorks Capital will likely maintain above-average capital adequacy ratios as it proceeds with its growth strategy, and its portfolio performance will remain in line with the rating,” said David Greenblatt, Director and Lead Analyst at S&P Global Ratings, in the published report.
NeighborWorks Capital continues to expand its work with institutional and mission-driven investors to increase the flow of flexible capital to NeighborWorks network organizations that develop and preserve affordable housing in communities nationwide. The upgraded rating further strengthens the organization’s ability to access capital markets and supports its long-term mission.
