Strong sales and EBITDA growth producing operational and financial results that exceeded our forecast for California-based KB Home (KBH) through the first half of fiscal 2017 have caused us to accelerate our expectations for improving credit measures. We are raising our corporate credit rating on KBH to 'B+' from 'B'. The outlook is positive. At the same time, we are raising our issue-level rating on the company's senior unsecured notes to 'B+' from 'B'. The recovery rating on the unsecured notes is unchanged at '3'. The outlook is positive due to our view that the company will likely continue to achieve higher-than-market growth in home sales and EBITDA margins at levels that may trigger further positive rating actions over the
