KB Home's $300 Million Senior Unsecured Notes Rated 'BB-' (Recovery Rating: '3')

CENTENNIAL (S&P Global Ratings) Oct. 21, 2019---S&P Global Ratings today assigned its 'BB-' issue-level rating and '3' recovery rating to KB Home's proposed $300 million senior unsecured notes due in 2029. The '3' recovery rating indicates our expectation of meaningful (50%-70%; rounded estimate: 65%) recovery in the event of payment default. We expect the company to use the proceeds from these notes to repay most of its $350 million outstanding 8.00% senior unsecured notes due March 2020. For a more detailed view of our credit opinion, please see our most recent research update on KB Home, published Jan. 29, 2019, on RatingsDirect. General Criteria: Group Rating Methodology, July 1, 2019 Criteria Corporates General: Corporate Methodology: Ratios And Adjustments,

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