Irvine-based The New Home Co. Inc. has maintained its operating momentum with entry into new markets and expanded scale, all while S&P Global Ratings forecasts leverage to remain approximately 5x through 2025. Additionally, New Home has announced a $75 million add-on to its senior unsecured notes. Consequently, we revised our rating outlook on New Home to positive from stable. We also affirmed all ratings, including the 'B-' issuer credit rating on the company and the issue-level ratings on its outstanding senior unsecured notes. The positive outlook reflects the potential for an upgrade of the company within the next 12 months if it maintains our forecasted year-over-year revenue, liquidity position, and EBITDA margins such that debt-to-EBITDA declines to the 5x area.
