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Moody's affirms M/I Homes ratings


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Moody's affirms M/I Homes ratings

Moody's affirmed M/I Homes Inc.'s B1 corporate family rating, B1-PD probability of default rating and B1 senior unsecured regular bond/debenture rating.

The ratings outlook is stable.

The rating agency based the homebuilder's corporate family rating on its market position in key geographic markets; stable balance sheet management and conservative financial policies; and focus on first-time product for about one-third of the business.

However, it is limited in part by Moody's view that the homebuilding industry's gross margins will be challenged due to increasing costs of land, labor and material, among other factors.

The agency is of the opinion that the liquidity profile of M/I Homes will be good over the next 12 to 18 months due to the remaining availability on its $500 million unsecured revolving credit facility, strong compliance cushion under the credit agreement's financial covenants, and access to alternate liquidity from land supply and unsecured capital structure.

The stable outlook factors in the agency's expectation that M/I Homes will benefit from strong operating fundamentals in the homebuilding segment.