Fitch affirms Hovnanian

Fitch Ratings said it affirmed the ratings of Hovnanian Enterprises, Inc., including the company's issuer default rating, at CCC.

“The company's capital structure is untenable unless the improvement in housing extends for several more years and HOV meaningfully improves liquidity and favorably refinances, or extends, its debt maturities, the agency said in a news release.

Fitch noted that HOV's debt maturities are currently well laddered, with the next debt maturity occurring in November 2020, when $75 million of senior secured bonds mature.

“There is significant refinancing risk in 2021 and 2022 as capital markets access remains challenging for the company,” the agency said.

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