S&P lifts Shea Homes

S&P said it raised its ratings on Shea Homes LP and its senior unsecured notes to BB- from B+ and revised the recovery rating on the notes to 3 from 2.

“Our assessment of Shea's financial risk reflects our expectation that its 2023 EBITDA of about $437 million could decline by 35% over the next 12 months and still result in debt to EBITDA below 3x. We do not expect total debt to change much over the same time span, nor do we expect a 35% decline in EBITDA in 2024 or 2025. As such, we forecast EBITDA of $290 million-$300 million in 2024, with adjusted debt of approximately $845 million,” S&P said in a press release.

The outlook is stable.

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