S&P boosts Taylor Morrison Home

S&P said it raised its ratings for Taylor Morrison Home Corp. and its senior unsecured notes to BB+ from BB. The recovery rating on the notes remains 3.

“Several homebuilders, including TMHC, built a good cushion for credit metrics behind profitability achieved in the past two years. While we expect some deterioration from revenue and cash flow pressure, we expect TMHC to maintain financial policies that will sustain solid credit metrics in the next few years. Homebuyers have seemingly acclimated to higher mortgage rates, which we believe will remain elevated,” the agency said in a statement.

S&P said it projects 30-year conventional fixed-rate mortgage rates in the mid- to high-7% range for 2023 before declining to the high-6% range for 2024.

The outlook is stable.

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