S&P lowers M/I

Standard & Poor's said it lowered its corporate credit, senior unsecured debt and preferred stock ratings on M/I Homes Inc.

The outlook remains negative.

The agency said that the rating actions reflect continued weakness in the company's Midwest and Florida housing markets where M/I's operations are concentrated, which is putting greater stress on profitability and interest coverage beyond previous expectations and will weigh on the company's performance over an extended period of time.

Credit tightening in the mortgage market, higher-than-expected pricing concessions and continued inventory overhang are weighing heavily on both M/I's operations and key credit metrics, it is likely that without a modification to the existing credit agreement, the company will violate the existing interest coverage covenant under its credit facility, S&P added.

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