S&P drops Ryland to junk

Standard & Poor's said it lowered the corporate credit and unsecured debt ratings on Ryland Group Inc. to BB+ from BBB-.

The outlook remains negative.

S&P said the downgrade reflects expectations for continued very weak housing market conditions, which is expected to pressure earnings over the next year, as well as the company's relatively limited liquidity.

Reasonable debt levels and minimal near-term maturities continue to support the lower ratings, the agency said, as do the company's good geographic diversity, conservative operating strategy and generally moderate financial policy.

The issuer has a total debt-to- EBITDA ratio of about 4.4 times.

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