Fitch rates M/I Homes notes B+

Fitch Ratings said it assigned a B+/RR3 rating to M/I Homes, Inc.'s $200 million 8 5/8% senior notes due 2018. Its issuer default rating is B, and the agency rates its senior notes and series A non-cumulative perpetual preferred stock at B+/RR3 and CCC/RR6, respectively.

The outlook is negative.

Proceeds from the notes will be used to fund the recently announced tender offer for the company's existing 6 7/8% senior notes due 2012 and for general corporate purposes.

The agency said the issuance of these notes and the renewal of the company's revolving credit facility in June address Fitch's earlier concern regarding near-term liquidity risk for the company. The company ended the third quarter with $43.9 million of unrestricted cash and $34.5 million of borrowing availability under its $140 million revolver.

The ratings and outlook for M/I Homes reflect the challenges still facing the housing market, Fitch said.

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