S&P boosts William Lyon

Standard & Poor's said it raised its corporate credit rating on William Lyon Homes to CCC- from SD (selective default).

The outlook is negative.

At the same time, the agency said it raised its ratings on the company's senior unsecured notes to CC from D. The recovery rating on these securities remains 5.

"The upgrades follow its review of William Lyon's capital structure with adjustments for the recent tender for some of its notes," said S&P credit analyst James Fielding.

"We viewed the below-par exchange as tantamount to default given the distressed financial condition of the company. its CCC- corporate credit rating on the company reflects its view that the company remains highly leveraged on a pro forma basis, as well as its expectations that covenant pressures will heighten if operating losses continue to mount."

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