S&P ups Century Communities

S&P said it upgraded its ratings on Century Communities Inc. and its senior unsecured notes to BB from BB-. The recovery rating on the unsecured notes remains a 3.

“We expect closings and margins to be stronger than the first half of 2023, as momentum carries into 2024. Mortgage rates are stabilizing after the significant jump through the first half of 2023 as buyers acclimate to higher interest rates. Additionally, S&P Global Ratings analysts expect housing starts of about 1.4 million in 2023 and 1.3 million in 2024 (compared with 1.2 million we previously forecast), as recessionary fears in the U.S. economy dissipate,” S&P said in a press release.

The agency said it forecasts the company will generate EBITDA of roughly $500 million in fiscal 2023 before rising to $650 million in 2024.

The outlook is stable.

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