Investing.com -- S&P Global Ratings has assigned a 'BBB+' issue-level rating to the proposed senior unsecured note offering by D.R. Horton Inc. The rating agency made the announcement on February 19, 2025.

The proceeds from the offering are expected to be used by the company for general corporate purposes. S&P Global Ratings believes that D.R. Horton's low leverage at this stage in the housing cycle provides a solid buffer to keep its debt to EBITDA ratio below 1x, even if the market conditions were to worsen.

The rating agency anticipates that D.R. Horton will maintain an adjusted debt to EBITDA ratio of less than 1x in both 2025 and 2026. This expectation takes into account adjustments made by S&P Global Ratings to the traditional debt to EBITDA ratio.

D.R. Horton Inc., a leading home construction company, has not yet made any public comments regarding the rating or the proposed note offering.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.