Moody's gives D.R. Horton notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to D.R. Horton, Inc.'s proposed $400 million senior unsecured notes due 2023, proceeds of which will be used for general corporate purposes, including growth capital and repayment of debt maturities.

At the same time, the agency affirmed the company's Ba2 corporate family rating, Ba2-PD probability of default rating, the Ba2 ratings on the existing senior unsecured notes and convertible senior notes and the SGL-2 speculative grade liquidity rating.

The outlook remains positive.

Moody's said the Ba2 rating reflects the company's conservative capital structure, as reflected in one of the lowest homebuilding debt leverage ratios in the industry; its relatively clean and transparent balance sheet; its strong earnings metrics, including healthy gross margins and positive net income generation; and its position as one of the largest and most geographically diversified homebuilders in the United States.

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