S&P changes D.R. Horton to positive

Standard & Poor's said it revised the outlook on D.R. Horton Inc. to positive from stable and affirmed its BB+ corporate credit rating.

The agency also affirmed its BB+ issue-level rating on the company's senior unsecured debt, in line with the corporate credit rating. The recovery rating on the senior unsecured debt remains 3, reflecting expectations for a meaningful recovery (50% to 70%, in the upper half of the range) in the event of payment default.

"The positive outlook on D.R. Horton Inc. reflects our expectation that it will continue to benefit from an improving housing market over the next two years by increasing revenues and improving EBITDA such that gross debt to EBITDA declines below 2x," S&P credit analyst Maurice Austin said in a news release.

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