Fitch affirms KB Home

Fitch Ratings said it affirmed the ratings of KB Home, including the senior unsecured debt at BB+ and the senior subordinated debt BB-.

The outlook is positive.

According to Fitch, the ratings reflect KB Home's solid, consistent profit performance in recent years and the expectation that the company's credit profile will continue to improve as it executes its business model and embarks on a new period of growth. The ratings also take into account KB Home's broadened customer mix, its conservative building practices, and effective use of return on invested capital criteria as a key element of its operating model.

Risk factors also include the cyclical nature of the homebuilding industry and KB Home's rising off-balance sheet activities, the agency said.

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