Moody's: KB Home outlook positive

Moody's Investors Service said it raised the outlook on KB Home to positive from stable. At the same time, Moody's confirmed all of the company's existing ratings, including the senior implied rating, issuer rating, and the ratings on the company's senior notes at Ba1 and on its senior subordinated debt at Ba2.

Moody's said the change in outlook reflects KB Home's improving financial results and profile and success at reducing its earnings concentration in California while the ratings themselves incorporate the company's leading share position in many of the markets that it serves, successful track record both in de novo expansions and in integrating acquisitions, and long history.

At the same time, the ratings consider the financial and integration risks that accompany an aggressive expansion strategy, the still-sizable concentration of land inventory values and profits in California and the large, ongoing share repurchase program.

© 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.