Fitch lowers Meritage Homes

Fitch Ratings said it downgraded Meritage Homes Corp.'s issuer default rating B+ from BB- and senior subordinated debt to B-/RR6 from B.

The agency affirmed Meritage Homes' senior unsecured debt at BB- and assigned a recovery rating of RR3.

The outlook remains negative.

The downgrade reflects the difficult housing environment, Fitch said. The downgrades also reflect operating margins, further deterioration in credit metrics and erosion in tangible net worth from non-cash real estate charges.

Ratings are based on Meritage Homes' conservative land policies and geographic and product line diversity, the agency said.

© 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.