S&P lowers MDC to negative

S&P said it revised the outlook on MDC Holdings Inc. to negative from stable.

The agency also said it affirmed the company’s BB+ corporate credit rating and BB+ rating on its senior unsecured notes.

Although the baseline forecast projects the company’s debt leverage to improve over the next 12 months, the negative outlook reflects the risk of continued subcontractor shortages and subdued closing growth, S&P said.

This could cause its debt-to-EBITDA ratio to remain at more than 4x over the next 12 months, above expectations of 3x to 4x for the current rating, the agency said.

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