Moody’s gives Horton notes Baa2

Moody’s Investors Service said it assigned a Baa2 rating to D.R. Horton, Inc.’s proposed $500 million of senior unsecured notes due 2027, the proceeds of which will be used for general corporate purposes.

“Horton’s transaction will result in a modest increase in leverage, with pro forma homebuilding debt to capitalization ratio rising to 25% from 22% at June 30, 2020. Moody’s estimates pro forma homebuilding EBIT to interest coverage for this offering to remain solid at approximately 15.5x,” Moody’s said in a press release.

All other ratings of Horton and the stable outlook are unchanged, the agency said.

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