S&P changes Meritage view to positive

S&P said it revised the outlook for Meritage Homes Corp. to positive from stable and affirmed its BB ratings.

“Our outlook revision to positive reflects Meritage’s meaningfully improved operating performance, resulting in better credit metrics than we had anticipated at the onset of the pandemic when sales were initially down about 50% for several weeks. However, since then, sales rebounded sharply, and Meritage’s reported second-quarter (ended June 30) orders were up 32% from the previous year,” S&P said in a press release.

S&P’s said its revised forecast calls for EBITDA to approach $600 million with adjusted net debt to EBITDA below 2x in fiscal 2020.

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