Moody's assigns Ba2 to KB Home notes

Moody's Investors Service said it gave a Ba2 rating to KB Home’s planned $350 million of senior unsecured notes due 2030.

The agency also changed the outlook for KB Home to positive from stable and affirmed all ratings of the company, including its Ba2 corporate family rating and Ba2 ratings on its senior unsecured notes. The SGL-1 speculative grade liquidity rating is maintained.

KB Home will use the proceeds to retire its $350 million senior unsecured notes due in September.

"The positive outlook reflects Moody's expectations of KB Home's robust expansion in revenue scale in the next 12 months, supported by favorable demographic trends, the company's focus on first-time home buyer for over half of home closings, and its strong backlog position of $5.7 billion at Feb. 28, 2022," said Natalia Gluschuk, a Moody's vice president and senior credit officer, in a press release.

"We also expect continued strengthening in credit metrics, including a decline in leverage through a build in net worth and repayment of revolver borrowings, and maintenance of solid gross margins," Gluschuk added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.