S&P puts New Home on watch

S&P said it placed its ratings, including the B- issuer rating, of the New Home Co., Inc. on CreditWatch with negative implications.

“The CreditWatch listing reflects our expectation that the upcoming maturity of New Home's revolver may affect its ability to fund its near-term obligations and overall liquidity position. In addition, it is our belief that New Home will face headwinds in favorably extending or refinancing its bank facility, which became current this month,” said S&P in a press release.

The agency plans to evaluate the company's near-term results in light of any new bank agreement, while also taking into consideration forecasted results at that time. “We expect to resolve the CreditWatch within 90 days,” S&P said.

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