Moody’s lowers Miller Homes

Moody’s Investors Service said it lowered its ratings for Miller Homes Group (Finco) plc and its £820 million of senior secured notes to B from B+ and affirmed the 4 recovery rating (30%-50%; rounded estimate: 45%).

“We downgraded Miller Homes because we now expect its leverage will remain elevated at about 5x-5.5x in 2024, before decreasing to about 3.5x-4x in 2025 on the back of improving EBITDA. Our new base case reflects our expectations that persisting macroeconomic uncertainties and tightened, although gradually improving, mortgage market conditions in the U.K. will likely continue to contain demand for new homes in 2024 before recovering in 2025,” S&P said in a press release.

The outlook is stable.

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