NEW YORK (AP) -- Fitch Ratings on Friday raised its outlook for PulteGroup Inc. to "Stable" from "Negative," citing the homebuilder's improving finances and the moderate recovery in the housing market.
The ratings service also backed its "BB" issuer default rating and senior unsecured ratings for the Bloomfield Hills, Mich.-based company. It noted that PulteGroup has posted significant improvements in orders for new homes and profitability and pointed to its geographic and product diversity, disciplined financial strategy and recently aggressive growth strategy.
Fitch added that the company's 2009 acquisition of Centex Corp. increased its geographic footprint and gave it a presence in entry level and other more affordable housing, which complemented its existing presence in the high-end and active-adult housing markets.
Fitch also said that the company did a good job reducing its inventory and generating cash flow in the years following the 2007 housing market collapse.
PulteGroup shares fell 11 cents to $13.49 in morning trading.