Fitch Ratings has downgraded PulteGroup’s issuer default (IDR) and senior unsecured ratings from BB+ to BB, according to MarketWatch. The outlook has been revised to negative from stable.
The downgrade in the PHM ratings and change in outlook reflect the still very challenging U.S. housing market. PHM's underperformance relative to its peers in certain operational and financial categories penalizes the ratings and influences the outlook.
Macroeconomic housing statistics (new and existing home sales, single-family housing starts) generally remained weak and disappointing through June and July. However, there was a seasonal pick-up in the spring orders compared to the winter. The public builders reported clear improvement in traffic during the spring selling season. New home prices so far this year are relatively stable.
For more information: www.marketwatch.com/story/fitch-downgrades-pultegroup-idr-to-bb-outlook-to-negative-2011-08-22
Advertisement
Related Stories
Builders
A Look at the Boom in Home Builder Stocks During 2023
In 2023, stocks for the 10 biggest U.S. home builders outperformed the S&P 500. What does that say about the housing market?
Financials
Housing Demand Could Rebound in 2024 as Mortgage Rates Ease
The Mortgage Bankers Association predicts lower mortgage rates could bring homebuyers back into the market in 2024
Housing Policy + Finance
The Federal Reserve Tightens Its Grip on the US Housing Market
Mortgage rates just surpassed a 23-year high, and experts say more rate hikes are on the horizon