Fitch rates M/I Homes notes BB

Fitch Ratings said it assigned a BB rating to M/I Homes Inc.'s new $200 million senior notes due 2015. The outlook is stable.

Proceeds from the new debt issue will be used to repay amounts outstanding under the revolving credit facility.

Fitch said the ratings reflect M/I Homes' healthy financial structure, solid coverages and strong operating performance consistent with the current point in the housing cycle. The company's debt-to-EBITDA of 1.7 times and debt-to-capital ratio of 37.5% are considered conservative for the rating and enhance financial flexibility in the event of an economic downturn.

Risk factors include the inherent - although somewhat tempered - cyclicality of the homebuilding industry. The ratings also manifest M/I Homes' capitalization and size and heavy although diminishing exposure to the Midwest, the agency said.

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