The New Home Co. Inc.'s New Senior Unsecured Notes Rated 'B-' (Recovery Rating: '3')

HARRISBURG (S&P Global Ratings) May 31, 2023--S&P Global Ratings today assigned its 'B-' issue-level rating and '3' recovery rating to California-based homebuilder The New Home Co. Inc.'s new senior unsecured notes. The '3' recovery rating indicates our expectation for meaningful (50%-70%; rounded estimate: 60%) recovery in the event of a payment default. We believe the company will maintain its current debt leverage following this issuance because we expect it will have a limited impact on its credit profile, given its performance and supportive credit metrics amid the recent market turbulence. New Home Co. will issue new senior notes with an increased coupon (to 8.250%) at the settlement date--stepping up to 11.000% on Oct. 15, 2025, and 12.250% on Oct. 15,

...- General Criteria: Environmental, Social, And Governance Principles In Credit Ratings , Oct. 10, 2021 - General Criteria: Group Rating Methodology , July 1, 2019 - Criteria | Corporates | General: Corporate Methodology: Ratios And Adjustments , April 1, 2019 - Criteria | Corporates | General: Recovery Rating Criteria For Speculative-Grade Corporate Issuers , Dec. 7, 2016...

Ratings Action