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Lennar's credit upgraded out of junk at Fitch
Lennar Corp.'s credit rating was upgraded Monday out of "junk" territory, following the completion of the deal in which the homebuilder acquired CalAtlantic Group Inc. in a $9.3 billion deal. The outlook was revised to stable. Fitch raised its rating to BBB-, the lowest investment grade rating, from BB+. The deal, which closed in February, and included $3.6 billion in assumed debt, created the largest homebuilder in terms of revenue and lifted the company into a top-3 position in 27 of the 30 largest metropolitan markets. "Fitch views this as an advantage as scale in local metro markets is becoming increasingly more important as homebuilders look for efficiencies in purchasing amid escalating costs," Fitch said. The stock has lost 20% year to date, while the iShares U.S. Home Construction ETF has lost 14% and the S&P 500 has gained 7.7%.
https://finance.yahoo.com/m/53a107c.../lennar's-credit-upgraded.html?.tsrc=rss
Lennar Corp.'s credit rating was upgraded Monday out of "junk" territory, following the completion of the deal in which the homebuilder acquired CalAtlantic Group Inc. in a $9.3 billion deal. The outlook was revised to stable. Fitch raised its rating to BBB-, the lowest investment grade rating, from BB+. The deal, which closed in February, and included $3.6 billion in assumed debt, created the largest homebuilder in terms of revenue and lifted the company into a top-3 position in 27 of the 30 largest metropolitan markets. "Fitch views this as an advantage as scale in local metro markets is becoming increasingly more important as homebuilders look for efficiencies in purchasing amid escalating costs," Fitch said. The stock has lost 20% year to date, while the iShares U.S. Home Construction ETF has lost 14% and the S&P 500 has gained 7.7%.
https://finance.yahoo.com/m/53a107c.../lennar's-credit-upgraded.html?.tsrc=rss
