S&P assigns BB+ to MDC notes

Standard & Poor's said it assigned its BB+ rating and 3 recovery rating to MDC Holdings Inc.'s proposed $250 million senior notes due 2024.

The 3 recovery rating indicates an expectation for a meaningful (50% to 70%) recovery in the event of default.

Net proceeds will be used for general corporate purposes, which may include the repayment of all or part of the $250 million 5 3/8% senior notes due in December 2014 and $250 million 5 3/8% senior notes due in July 2015.

The BB+ corporate credit rating and stable outlook on MDC reflect the company's "fair" business risk profile, which is supported by a homebuilding platform that operates with a shorter-than-average inventory position resulting in a more nimble operating platform.

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