S&P moves Miller Homes view to negative

S&P said it revised its outlook for Miller Homes Group (Finco) plc to negative from stable and affirmed its B+ ratings on the company and its senior secured notes. The notes’ 4 recovery rating (rounded estimate: 45%) is unchanged.

“The outlook revision reflects that we expect Miller Homes' debt to EBITDA to increase temporarily to about 4.5x-5x in 2023 from below 4x estimated for 2022. Our updated base case reflects that, in our view, macroeconomic uncertainty and tighter mortgage market conditions in the U.K. in 2023 are likely to lower house prices and decrease demand for new homes and therefore home deliveries in 2023,” S&P said in a press release.

The agency said it sees Miller’s financing metrics rebounding in 2024 to levels appropriate for the rating.

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