Fitch upgrades Meritage

Fitch Ratings said it upgraded the ratings of Meritage Homes Corp., including the company’s long-term issuer default rating to BB+ from BB. Fitch revised the outlook to stable from positive.

“The upgrade to BB+ and stable outlook reflects Fitch’s expectation that the company’s net debt to capitalization will remain sustainably in the 20%-30% range, in line with management’s target, which is considerably below Fitch’s positive rating sensitivity at the BB level of sustainably below 40%. Fitch’s view is supported by the company’s efforts to reduce debt and management’s willingness to slow housing starts and land investment during recent pauses in housing market growth,” Fitch said in a press release.

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