trending Market Intelligence /marketintelligence/en/news-insights/trending/NusimrfyoeR_KRpr93zvkQ2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us
In This List

S&P downgrades Hovnanian Enterprises

Gauging Supply Chain Risk In Volatile Times

The Commercial Real Estate (CRE) Sector Feels the Impact of the Coronavirus

Credit Analytics Case Study Poundworld Retail Ltd


IFRS 9 Impairment How It Impacts Your Corporation And How We Can Help

S&P downgrades Hovnanian Enterprises

S&P Global Ratings downgraded 's corporatecredit rating to CCC+ from B-.

The rating agency also downgraded its issue-level ratings onthe company's 7.25% first-lien senior secured notes due 2020 to CCC+ from B-;5% and 2% first-lien senior secured notes due 2021 to CCC from CCC+; and 9.125%second-lien senior secured notes due 2020 and senior unsecured notes due2016-2019 to CCC- from CCC. It retained its C rating on Hovnanian's preferredstock as the company is restricted from paying a dividend by covenants on thepublic bonds.

The outlook is negative.

Given Hovnanian's capital constraints, "very high"debt load and "very weak" interest coverage, S&P said itconsiders the company's capital structure "unsustainable," resultingin the ratings downgrade.

The rating agency attributed the negative outlook to thepossibility of a downgrade in the next 12 months if it appears Hovnanian willface delays or difficulty with raising capital through land banking deals,joint ventures or other arrangements to meet its debt maturities.

S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.