Orange County, Calif–based The New Home Co. Inc. is a homebuilder focused on the design and construction of luxury homes primarily in California. We are assigning a 'B-' corporate credit rating to the company. The outlook is stable. We are also assigning a 'B-' issue-level rating and a '3' recovery rating to the company's proposed offering of $250 million senior unsecured notes. The stable outlook reflects our view that The New Home Co. controls sufficient land and liquidity to expand its homebuilding platform and generate EBITDA growth. We project debt to EBITDA to improve in the next 12 months to below 5x. On March 6, 2017, S&P Global Ratings assigned its 'B-' corporate credit rating to The New Home Co.
