Moody's rates Century Communities notes B2

Moody's Investors Service said it assigned a B2 (LGD 4) rating to the proposed new $400 million of eight-year senior unsecured notes of Century Communities, Inc.

The proceeds will be used to refinance the $385 million of 6.875% senior unsecured notes due May 2022.

All of the other ratings on Century are unchanged and the outlook is stable.

Pro forma for this offering and the repayment of the existing notes, adjusted debt leverage will be little changed from Century's year-end 2018 figure of 54.4%, Moody's explained.

The ratings consider that the company has generally been improving its key financial ratios, including debt leverage and interest coverage, demonstrated resilience through previous market contractions and has built scale and expanded its geographic coverage, the agency said.

The ratings also recognize that the company has a healthy acquisition appetite, which can keep integration and pressure on debt leverage as major risk factors, Moody's said.

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