Fitch lifts D.R. Horton ratings

Fitch Ratings said it has upgraded D.R. Horton Inc.'s senior unsecured debt and unsecured bank credit facility ratings to BBB- from BB+ and raised the subordinated debt rating to BB+ from BB-.

The outlook is stable.

Fitch said the ratings action reflects a more conservative growth strategy with less reliance on acquisitions and expectation of consistent free cash flow generation.

Ratings for D. R. Horton are based on the company's above average growth during the ongoing housing expansion, execution of its business model, steady capital structure and geographic and product line diversity. The company has been an active consolidator in the homebuilding industry which has kept debt levels a bit higher than its peers. But management has also exhibited an ability to quickly and successfully integrate its many acquisitions.

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