OREANDA-NEWS. Fitch Ratings has affirmed and withdrawn the ratings of PulteGroup, Inc. (NYSE: PHM) and its subsidiary, Centex Corp. Fitch has withdrawn the ratings for commercial reasons.

KEY RATING DRIVERS

PHM's ratings reflect the company's broad geographic and product diversity, a long track record of adhering to a disciplined financial strategy and a sometimes aggressive growth strategy (via mergers and acquisitions). The ratings also reflect the favorable prospects for the housing sector in 2016 and 2017. Fitch believes that the housing recovery is firmly in place, although the rate of recovery remains well below historical levels and will likely continue to occur in fits and starts.

The ratings take into account the company's recently announced $1 billion incremental share repurchase authorization, bringing the company's buyback program to about $1.5 billion. The company expects to complete the authorization over the next 18 months through repurchases of $250 million in each of the third and fourth quarters of 2016 and the remaining $1 billion in 2017. The company expects to fund the share repurchases with cash flow from operations and incremental debt. Management indicated that it will slow the growth in land and development spending and will use excess cash flow to fund a large portion of the share repurchase program. Fitch expects debt/EBITDA will be about 3.0x at the end of 2016 and will be roughly 2.5x -2.75x by year-end 2017.

RATING SENSITIVITIES

Rating Sensitivities are not applicable as the ratings have been withdrawn.

FULL LIST OF RATING ACTIONS

Fitch has affirmed and withdrawn the following ratings:

PulteGroup, Inc.

--Long-Term Issuer Default Rating (IDR) at 'BBB-'; Outlook Stable;

--Senior unsecured notes at 'BBB-';

--Unsecured revolving credit facility at 'BBB-';

--Term loan at 'BBB-'.

Centex Corp.:

--Long-term IDR at 'BBB-'.