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Beazer Homes USA, Inc. -- Moody's changes outlook for Beazer to stable, affirms B3 CFR

Moody's Investors Service ("Moody's") changed the outlook for Beazer Homes USA, Inc. ("Beazer") to stable from positive. At the same time, all existing ratings of the company, including its B3 Corporate Family Rating, B3-PD Probability of Default Rating, B3 ratings on its senior unsecured notes of varying maturities, and SGL-2 Speculative Grade Liquidity Rating, were affirmed. The change in outlook to stable reflects the company's persisting high debt leverage, as measured by Moody's homebuilding debt to capitalization ratio, which stood at 72% at March 31, 2019 and Moody's view that given our reduced growth expectations for the homebuilding sector, it will take a longer time for the company to achieve an improvement in credit metrics towards a level consistent with a higher rating.