S&P upgrades KB Home

S&P said it upgraded the ratings on KB Home and its senior unsecured notes by one notch, to BB, from BB-. The notes’ 3 recovery rating remains unchanged.

“Earnings have doubled and debt has dropped in recent years. EBITDA is poised to remain about $600 million in 2020 and 2021, more than double the level of just a few years ago. Helped by a $465 million drop in net debt from 2017 to 2019, our assessment of KB Home's financial risk profile is trending toward that of much larger, higher-rated U.S. builders, like Lennar Corp. and PulteGroup Inc.,” said S&P in a press release.

The outlook is stable.

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