Moody's rates M/I Homes notes Caa1

Moody's Investors Service said it assigned a Caa1 rating (LGD4, 65) to M/I Homes, Inc.'s proposed $150 million senior unsecured notes due 2018.

In addition, Moody's affirmed the company's B3 corporate family and probability-of-default ratings, the Caa1 rating on its senior unsecured notes due 2012 and the Caa3 rating on its preferred stock.

The outlook is stable.

The B3 corporate family rating reflects weakness in many of M/I Homes' key credits metrics, including interest coverage and return on assets, the agency said.

The company's corporate family rating is supported by its relatively modest adjusted debt to capitalization ratio and its focus on margin expansion and return to profitability, the agency noted.

In addition, the rating acknowledges M/I Homes' conservative and disciplined operating strategy, Moody's said.

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