S&P ups M/I Homes, rates convertibles CCC+

Standard & Poor's said it raised its ratings on M/I Homes Inc., including the corporate credit and senior unsecured ratings, to B from B-.

S&P also maintain a 3 recovery rating on the company's senior unsecured notes.

The outlook was revised to stable from positive.

The agency also assigned a CCC+ issue-level rating and a 6 recovery rating to the company's proposed $50 million of convertible senior subordinated notes.

"The upgrade acknowledges the strength of M/I's credit metrics relative to other similarly-rated builders, improved liquidity cushion from the proposed common equity and subordinated convertible notes issuance, and a faster than expected return to profitability," S&P credit analyst Matthew Lynam said in a news release.

"We believe the company's strategy to expand community count in its better performing markets and faster sales absorption from a relatively firmer overall housing environment will result in continued improvement of credit metrics through greater operating leverage," Lynam added in the release.

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