S&P shifts Century Communities view to positive

S&P said it changed Century Communities Inc.’s outlook to positive from stable and affirmed the BB- ratings on Century and its senior notes. The 3 recovery rating on the notes is unchanged, reflecting an expectation for meaningful recovery (50%-70%; point estimate: 60%) in default.

“Our positive rating outlook on Century is based on our forecast that during the next 12 months, debt will edge below 2x EBITDA, EBITDA will cover interest by more than 10x, and debt to capital will trend toward 40%. We think Century's profitability will continue to trend firmly upward over the next year, aided by the tailwind of strong broader demand across most U.S. housing markets,” S&P said in a press release.

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