Fitch turns M/I Homes view to positive

Fitch Ratings said it changed the outlook for M/I Homes, Inc. (NYSE: MHO) to positive from stable and affirmed its ratings, including the company's BB senior unsecured ratings.

“The outlook revision to positive reflects the company's meaningfully stronger credit metrics, successful execution of its measured growth strategy resulting in increased scale and its demonstrated willingness to pull back on land and development spending in periods of uncertainty to generate positive cash flow from operations (CFO).

“Fitch expects the company will maintain low leverage levels, including net debt to capitalization below 30% and EBITDA leverage below 3x. Fitch expects MHO will sustain these strong credit metrics despite the assumption that single-family housing starts fall 15%-20% in 2023 and the cost environment remains challenging, pressuring margins,” the agency said in a press release.

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