Fitch rates Meritage notes BB-

Fitch Ratings said it expects to assign a BB-/RR3 rating to Meritage Homes Corp.'s proposed offering of $200 million of senior unsecured notes due 2020.

The issue will be ranked on a pari passu basis with all other senior unsecured debt, the agency said, adding that the proceeds from the offering of notes will be used to redeem certain of the company's outstanding senior notes.

The company announced the commencement of cash tender offers to purchase up to $195 million principal amount of selected senior notes, Fitch added, stating that the company is offering to purchase any and all of its $130 million outstanding 7% senior notes due 2014.

The outlook is negative.

Fitch's current issuer default rating for Meritage is B+.

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