Fitch assigns BB+ to Meritage notes

Fitch Ratings said it assigned a BB+/RR4 rating to Meritage Homes Corp.'s proposed offering of senior notes.

Meritage intends to use the net proceeds from the offering to fully redeem its $300 million notes due 2022 and for general corporate purposes.

Fitch rates Meritage's long-term issuer default rating and unsecured debt BB+/RR4 with a stable outlook.

“Meritage's ratings reflect the company's strong credit metrics, moderate geographic and product diversity, healthy liquidity position and execution of its business model in the current housing environment,” Fitch said in a news release.

“The ratings also consider Fitch's expectation for Meritage to generate less CFFO than higher-rated peers and the company's aggressive shift toward a more speculative homebuilding strategy, driven by its emphasis on the entry-level/first-time buyer, which Fitch views as a riskier approach to homebuilding.”

© 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.