Research Update: KB Home Upgraded To ?BB+? From ?BB? On Strong Operating Momentum; Outlook Stable; Unsecured Debt Rating Raised - S&P Global Ratings’ Credit Research

Research Update: KB Home Upgraded To ?BB+? From ?BB? On Strong Operating Momentum; Outlook Stable; Unsecured Debt Rating Raised

Research Update: KB Home Upgraded To ?BB+? From ?BB? On Strong Operating Momentum; Outlook Stable; Unsecured Debt Rating Raised - S&P Global Ratings’ Credit Research
Research Update: KB Home Upgraded To ?BB+? From ?BB? On Strong Operating Momentum; Outlook Stable; Unsecured Debt Rating Raised
Published Mar 25, 2024
8 pages (3233 words) — Published Mar 25, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

U.S. homebuilder KB Home (KBH) maintains improving operating momentum despite softer macroeconomic dynamics, and we forecast debt to EBITDA to stay below 2x and EBITDA margins of approximately 13%-15% for 2024 and 2025. Therefore, we raised our issuer credit rating and our issue-level rating on KB Home and its senior unsecured notes to 'BB+' from 'BB'. The recovery rating on the notes remains '3'. The stable outlook reflects our forecast that debt to EBITDA will be below 2x for the next 24 months and debt to capital will stay around 25%. Strong earnings performance and relatively stable debt levels in 2024 and 2025 will help support this forecast. We expect gross margins to decline by roughly 100 basis points to

  
Brief Excerpt:

...- U.S. homebuilder KB Home (KBH) maintains improving operating momentum despite softer macroeconomic dynamics, and we forecast debt to EBITDA to stay below 2x and EBITDA margins of approximately 13%-15% for 2024 and 2025. - Therefore, we raised our issuer credit rating and our issue-level rating on KB Home and its senior unsecured notes to '##+' from '##'. The recovery rating on the notes remains '3'. - The stable outlook reflects our forecast that debt to EBITDA will be below 2x for the next 24 months and debt to capital will stay around 25%. Strong earnings performance and relatively stable debt levels in 2024 and 2025 will help support this forecast....

  
Report Type:

Research Update

Ticker
KBH
Issuer
KB Home
GICS
Homebuilding (25201030)
Sector
Global Issuers , Structured Finance
Country
United States
Region
United States
Format:
PDF Adobe Acrobat
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S&P Global Ratings’ Credit Research—S&P Global Ratings’ credit research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P Global Ratings also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.

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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: KB Home Upgraded To ?BB+? From ?BB? On Strong Operating Momentum; Outlook Stable; Unsecured Debt Rating Raised" Mar 25, 2024. Alacra Store. May 01, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-KB-Home-Upgraded-To-BB-From-BB-On-Strong-Operating-Momentum-Outlook-Stable-Unsecured-Debt-Rating-Raised-3143313>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: KB Home Upgraded To ?BB+? From ?BB? On Strong Operating Momentum; Outlook Stable; Unsecured Debt Rating Raised Mar 25, 2024. New York, NY: Alacra Store. Retrieved May 01, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-KB-Home-Upgraded-To-BB-From-BB-On-Strong-Operating-Momentum-Outlook-Stable-Unsecured-Debt-Rating-Raised-3143313>
  
US$ 225.00
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