S&P: Diamond Resorts stable

Standard & Poor's said it revised the outlook on Diamond Resorts Parent LLC to stable from positive.

The agency also said it affirmed its B- corporate credit rating.

The outlook revision reflects a belief that an upgrade is less likely over the intermediate term due to weaker-than-expected sales in 2010, S&P said, and a belief that sales will grow only modestly in 2011.

The rating reflects the company's high debt leverage and reliance on external sources of capital to achieve its sales budget, S&P said.

These factors are somewhat tempered by the company's well-developed and cash-flow positive management business, the agency said.

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