Moody's rates Lennar notes B3

Moody's Investors Service said it assigned B3 ratings to the new $250 million senior unsecured note offering and the new $250 million convertible senior note offering of Lennar Corp. Moody's also said it affirmed the company's existing corporate family of B2, existing senior unsecured note rating of B3 and speculative grade liquidity rating of SGL-2.

The outlook was changed to positive from stable.

Proceeds of the offering will be used to tender for near-term debt obligations and could include the repayment or repurchase of its existing senior notes or other debt.

The agency said it believes the industry's fundamental credit conditions have stabilized although they remain weak and that Lennar's liquidity has improved, although it could still benefit from additional rebalancing of debt maturities.

Lennar's cash flow generation will be challenging to maintain as it increases its investment in land and distressed assets in 2010 and beyond, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.