S&P lifts M/I Homes notes, view to positive

Standard & Poor’s said it affirmed the B corporate credit rating on M/I Homes Inc.

The agency also said it revised the outlook on the company to positive from stable.

S&P also said it raised the rating on the company’s senior unsecured notes to B+ from B. The recovery rating on the notes is 2, indicating 70% to 90% expected default recovery.

The outlook revision reflects a view of the company’s improving credit quality, driven by its gradual improvement in adjusted gross margins over time and its progress toward increasing diversification by growing its Texas operations, the agency said.

The company’s credit measures will continue to see incremental improvement as expanding community count drives home-closing volume while U.S. housing starts climb in a stable demand environment, the agency said.

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