Fitch lifts NVR; view stable

Fitch Ratings said it upgraded NVR, Inc.'s issuer default rating from BBB to BBB+.

The outlook was revised to stable from positive.

The ratings reflect the strong credit protection measures, solid free cash flow generation and balance sheet liquidity that results from its unique operating model, Fitch said, and the company's capacity to withstand a meaningful housing downturn and then effectively manage in a still challenging housing environment.

The cyclical nature of homebuilding is reflected in the ratings as is the company's heavy exposure to the Washington D.C. and Baltimore markets, the agency said.

The upgrade also considers the company's modest debt, solid liquidity position and the agency's level of confidence with regard to the company's operating model under various economic conditions, Fitch said.

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