Fitch gives Hovnanian notes CCC

Fitch Ratings said it has assigned a CCC/RR6 rating to Hovnanian Enterprises, Inc.'s proposed offering of $200 million principal amount of senior unsecured notes due 2019.

Net proceeds from the offering will be used for general corporate purposes, including land acquisition and land development, the agency said.

The outlook is stable.

The rating for Hovnanian is influenced by the company's execution of its business model, land policies, and geographic, price point and product line diversity, while risk factors include the cyclical nature of the homebuilding industry, the company's high debt load and high leverage, Fitch noted.

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