Mattamy Group Corp.

Overview Key strengths Key risks Strong free cash flow generation, and modest leverage with strong liquidity, supported by its cash balances, full availability under its credit facility. Exposure to a highly competitive, cyclical industry sensitive to changes in general and local economic and real estate conditions. Good geographic diversity with properties across the U.S. and Canada, including a leading market share in the Greater Toronto Area (GTA). Smaller size and scale than higher-rated peers, including a lack of scale in key U.S. markets. We expect the company's revenue will remain solid over this period, including relatively flat year-over-year consolidated revenue growth. Additionally, we forecast Mattamy?s recently strong profitability metrics to revert to the historical levels of EBITDA margins between 16%-17%

...S&P Global Ratings forecasts Mattamy Group Corp. will maintain leverage below 2x for the next 12-24 months. We expect the company's revenue will remain solid over this period, including relatively flat year-over-year consolidated revenue growth. Additionally, we forecast Mattamy's recently strong profitability metrics to revert to the historical levels of EBITDA margins between 16%-17% due to the Canadian market normalization, recent record high performance, continued elevated interest rates, affordability challenges, and a cooler overall economy. Furthermore, S&P Global Ratings anticipates adjusted debt of approximately $2.1 billion, which lead us to expect the company's leverage will be in the 1.5x-2.0x range over the next 12-24 months even amid cooler housing market conditions....

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