Los Angeles-based homebuilder KB Home (KBH) reported solid results for 2017, outperforming our forecast for both revenue growth and profitability. We expect continued home closing growth in 2018 will push EBITDA toward $575 million. We are raising our corporate credit rating on KBH to 'BB-' from 'B+'. The outlook is stable. We are also raising our issue-level ratings on the company's senior unsecured debt to 'BB-' from 'B+', in line with the corporate credit rating. The recovery rating is '3'. The stable outlook reflects our expectation for continued EBITDA growth such that leverage remains between 3x and 4x in 2018, and interest coverage is sustained at about 3x. On Jan. 19, 2018, S&P Global Ratings raised its corporate credit rating
