S&P revises KB Home view to positive

S&P said it revised KB Home’s outlook to positive from stable and affirmed its BB ratings. The 3 recovery rating on the debt is unchanged.

“We expect another significant jump in EBITDA for 2022. After climbing an estimated more than 50% in 2021, KB Home's EBITDA should trend above 40% against this year. These improvements, about evenly split between revenue and margin gains, support total EBITDA of $1.2 billion in 2022, more than double from 2020,” S&P said in a press release.

The agency noted it could raise KB Homes’ issuer rating to BB+ over the next 12 months if it sustains debt to EBITDA below 2x while maintaining at least an adequate liquidity assessment.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.