Fitch Ratings affirmed Hovnanian Enterprises Inc.'s CCC long-term issuer default rating and the ratings on the homebuilder's secured revolver and senior unsecured notes and term loan, and downgraded the ratings on the company's secured notes.
Fitch said it withdrew all of Hovnanian's ratings for commercial purposes.
Hovnanian's ratings reflect its weak liquidity position, significant refinancing risk and a high debt load that restrains the company's ability to invest in land and grow revenue.
The rating agency expects Hovnanian's revenue to have a slight improvement in fiscal 2020, assuming the housing market picks up and the economy continues to grow.
