S&P rates Forestar B

S&P said it assigned its B issuer credit rating to Forestar Group Inc.

The outlook is stable.

“Our ratings on Forestar Group Inc. reflect its modest position as a small land developer, operating in an industry we consider highly volatile, and the risks of rising interest rates. Exposure to rising interest rates typically leads to negative growth for land developers as consumers curtail new home purchases when mortgage rates rise, often for protracted lengths of time until the market reverses and rates begin to decline,” S&P said in a news release.

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