S&P lifts outlook on homebuilder M/I Homes

NEW YORK (AP) — Standard&Poor's Ratings Services said Tuesday it lifted its outlook on homebuilder M/I Homes Inc. because of stronger order trends and smaller losses in recent quarters.

S&P revised its outlook to "stable" from "negative" and said the company's equity offering in the second quarter bolstered its balance sheet and provided more liquidity. S&P said M/I Homes is gaining market share, especially in the Midwest, and new orders have risen sharply at a much quicker pace when compared to competitors.

S&P also affirmed its credit ratings on the company, including a "B-" corporate credit rating — six notches into junk status.

S&P is unlikely to raise ratings within the next year, saying that M/I Homes won't report consistently profitable operations until possibly late in 2010.

M/I Homes shares closed up 70 cents, or 4.4 percent, at $16.49.