S&P Global Ratings affirmed all its ratings on homebuilder NVR Inc., including its BBB+ long-term corporate credit rating, with a stable outlook.
The rating agency said the ratings take into account the large scale of NVR's operations and the fact that its selling price points cover a broad range of customer segments.
S&P also noted that it revised its assessment of NVR's financial risk profile to minimal from modest as the company has continued to operate with a debt-to-EBITDA ratio of less than 0.5x throughout the cycle. The rating agency expects the company to maintain the minimal amount of leverage in the next 24 months.
The stable outlook mirrors S&P's expectation for the company to sustain an adjusted debt-to-EBITDA ratio of less than 1x and a debt-to-capital ratio of less than 25% while continuing to boost its market share organically within the next two years.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings, a separately managed division of S&P Global. Descriptions in this news article were not prepared by S&P Global Ratings. The original S&P Global Ratings documents referred to in this news brief can be found here.