Jun
30
U.K. Homebuilders Seen Hunkered Down for Whatever Brexit Brings
By-
Average default risk fell to two steps above high-yield zone
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Only huge stock drops, debt spikes would make them junk-like
U.K. homebuilders have a lot of breathing room to survive plunging share prices and the potential for a Brexit-induced housing slump, data compiled by Bloomberg show.
Gauges of credit health held at investment-grade levels for 11 of 13 listed U.K. homebuilders, even as their stocks slumped an average 27 percent in the wake of the U.K.’s vote to leave the European Union. McCarthy & Stone Plc dropped into junk territory under Bloomberg’s risk model, which is based on debt loads, interest expenses, cash flow, volatility and share prices. Trafalgar New Homes Plc was already in the high-yield zone…
