New rating reflects “stable outlook” for the Loan Fund
BlueHub Capital, a national nonprofit community development finance organization, today announces that S&P Global Ratings has upgraded its affiliate BlueHub Loan Fund’s financial outlook from ‘A’ to ‘A+’, citing increased equity and above-average profitability.
BlueHub Loan Fund helps connect low-income communities with flexible financing to generate equitable and inclusive economic opportunity. It provides financing to affordable housing projects, community health centers, schools and other community assets across the United States. S&P raised both BlueHub Loan Fund’s long-term issuer credit rating and series 2020 Sustainability Bond rating to ‘A+’ with a stable outlook.
“BlueHub has worked hard to build a robust balance sheet to ensure we can continue to serve low-income communities, despite challenging economic environments. This upgraded rating reflects BlueHub’s long term financial strength and commitment to our mission,” said Elyse Cherry, CEO of BlueHub Capital. “With over $1.9 billion invested by the Loan Fund, we leverage every dollar to revitalize communities hit hardest by decades of disinvestment. S&P’s rating shows that building healthy communities can result in a double-bottom-line return.”
According to S&P Global, the increased rating reflects BlueHub Loan Fund’s:
- Increased capital adequacy,
- above-average profitability, compared to other rated community development financial institutions (CDFIs),
- very strong asset quality, and
- proactive loan portfolio management.
“An ‘A+’ rating from S&P reflects the BlueHub team’s years of dedicated work to match our flexible capital to impactful community development projects, while proactively managing a growing portfolio of loans,” said Karen Kelleher, president of BlueHub Loan Fund. “This upgraded rating will help deliver more much-needed capital to low-income communities and communities of color.”
The $75 million Sustainability Bond, which closed in January 2020, was BlueHub Loan Fund’s first public offering and includes $56.25 million in 10-year bonds and $18.75 million in 7-year bonds.
About BlueHub Capital
BlueHub Capital is a mission-driven, nonprofit community development finance organization focused on building healthy communities where low-income people live and work. BlueHub uses innovative financial tools to support projects that make communities more vibrant places to live through four distinct programs: BlueHub Loan Fund (community development financing), BlueHub SUN (foreclosure relief), BlueHub Energy (clean energy access) and One Percent for America (citizenship financing).