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Piers Williamson, the corporation's chief executive, said the the bonds intermediary was in "active dialogue" with the three major agencies: Moody's, Standard & Poor's and Fitch.

He said a credit rating would allow it to "borrow more cheaply and pass this into associations".

A ratings agency source said a rating would also add to the Housing Finance Corporation's credibility. "It's saying to the global market: this is where we are, this is where a global ratings agency thinks we are," he said.

He added that, in the long-term, lenders might lend to the corporation at lower rates.

Meanwhile, Williamson urged finance directors to take out financial products such as inflation-linked derivatives that would protect them from the effects of deflation.

He said he was discussing his inflation-linked derivative product with a number of associations.

The derivative paid is tied to the retail prices index in September of the year it is taken out. If inflation drops below this rate, the association is paid a derivative but if inflation rises, the association pays.

Williamson said the derivative payment could make up for lost rent in times of deflation. He said: "If inflation goes down, you may need this extra payment because rents have not gone up in the way you predicted in your business plan."

Headline inflation currently stands at 3.1%. Concerns have been voiced in the City that it is likely to fall further unless the Bank of England cuts interest rates from 3.75%.

Other lenders reported interest in inflation-linked derivatives. Christophe Cuny, head of long-term structuring and inflation derivatives at Abbey National, said: "We are getting more calls about them but I'm not sure it's a result of predictions about deflation."