Credit rating agency cites ‘extremely strong’ management and liquidity; maintains stable outlook
SAN FRANCISCO (October 2, 2025) – S&P Global Ratings has assigned an AA- rating to BRIDGE Housing’s upcoming issue of $150 million in taxable general obligation bonds, citing “extremely strong” management and liquidity as the nonprofit housing provider accelerates growth to address the affordability crisis on the West Coast.
In addition to rating the planned issuance of Series 2025 Social Bonds, S&P – a leading provider of independent credit risk research – reaffirmed its AA- overall issuer credit rating on BRIDGE Housing and its AA- long-term rating on BRIDGE’s outstanding debt, while maintaining a stable outlook.
The proceeds from the bond issue will be used primarily to fund development and acquisitions as BRIDGE forges ahead with a strategic plan to add 5,100 affordable housing units in California, Oregon, and Washington by 2027, a goal that BRIDGE is on track to achieve. S&P expressed confidence that despite the additional debt, BRIDGE’s “highly experienced management team,” increased cash flows, and strong reserves would provide stable, robust financial performance. In summarizing the rating, S&P focused on BRIDGE’s:
- “Extremely strong management and a strategic plan that supports its mission to provide quality low-income housing in the least affordable markets;
- “Very strong enterprise risk profile, supported by our assessment of strong market position, low industry risk and extremely strong management and governance;
- “Very strong financial risk profile supported by strong financial performance (as measured by an average 36.4% adjusted EBITDA to adjusted revenue), a strong debt profile, and extremely strong liquidity ratios (7.5x funding to cover uses); and
- “Ability to generate revenue streams from in-house development and operating activities.”
S&P noted that BRIDGE has strengthened key financial metrics, including its debt profile, since its last review in 2024 and outperforms its peers in areas such as liquidity and debt coverage capacity.
“This bond issue will be a catalyst for growth at a critical moment, and we are grateful for S&P’s careful review of our management and financial health,” said BRIDGE Housing President and CEO Ken Lombard. “Capital markets are a vital source of finance as we accelerate our work to deliver safe, stable, affordable homes for working families and others in need throughout the West Coast.”
BRIDGE has long been a financial markets pioneer, including being the first nonprofit housing developer to receive an S&P rating. The planned $150 million issue will be BRIDGE’s second Social Bond, following its landmark $100 million bond sale in 2020, which created a new asset class for its industry peers. Last year, BRIDGE became the first nonprofit housing firm to issue tax-exempt construction bonds, raising more than $70 million for one of Portland, Oregon’s largest affordable housing communities.
It has also forged partnerships with major financial institutions like Morgan Stanley, as well as leading affordable housing finance organizations like National Equity Fund, to tap capital outside of government subsidies, the traditional funding source for affordable housing.
“From leveraging federal and state resources to cultivating partnerships with institutional investors, we continue to innovate to bolster our financial strength and flexibility,” said Delphine Sherman, BRIDGE’s Chief Operating Officer and Chief Financial Officer. “We believe the S&P rating will reinforce investor confidence as we build on 42 years of success in delivering affordable housing at scale.”
The full S&P ratings report is available at this link.
About BRIDGE Housing
BRIDGE Housing Corporation is a leading nonprofit owner, developer, and manager of high-quality affordable housing on the West Coast, with a mission to strengthen communities and improve lives. Founded in 1983, BRIDGE Housing has participated in the creation of more than 23,000 affordable homes in California, Oregon and Washington, with a total development cost of $6 billion. Its current $4 billion portfolio totals about 15,000 apartments that are home to more than 30,000 residents, with more than 10,000 additional units in the development and acquisition pipelines. For more information, visit https://bridgehousing.com/.
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