S&P upgrades Meritage Homes

Standard & Poor's said it raised its corporate credit rating on Meritage Homes Corp. to BB- from B+. The outlook is stable.

In addition, S&P raised the issue-level ratings on the company's unsecured senior notes to BB- from B+. The recovery rating on this debt remains 3, indicating an expectation for meaningful (50% to 70%) recovery for lenders in the event of a payment default.

"The upgrade reflects the company's strong operating performance, with continued double-digit growth in homes-closed volume and average sale price and stable gross profit margins in the 20% to 23% range," said S&P credit analyst Kenny Tang in a news release.

© 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.