Moody's ups TopBuild

Moody's Investors Service said it upgraded TopBuild Corp.'s corporate family rating to Ba2 from Ba3, the probability of default rating to Ba2-PD from Ba3-PD and the rating on the company's senior unsecured notes to Ba3 from B1. The outlook remains stable. The company's speculative grade liquidity rating of SGL-2 is also unchanged.

The upgrade recognizes the company's solid improvement in operating results over the past three years and Moody's expectations these trends will continue. Moody's forecasts a continuation of stable operating fundamentals of the home building industry will support the improvement of the company's key credit metrics. At the year-end in December, Moody's expects leverage will fall to 2x and interest coverage will improve to 9x.

"TopBuild's commitment to maintaining a conservative financial policy coupled with the consistent improvement in financial and operating metrics are key drivers behind the upgrade," said Emile El Nems, a Moody's vice president and senior analyst, in a press release.

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