Moody's cuts Orleans Homebuilders

Moody's Investors Services said it lowered the ratings for Orleans Homebuilder's first-lien senior secured term loan and first-lien senior secured revolving credit facility to Caa1 from B3.

In the same rating action, the agency affirmed the company's Caa1 corporate family rating and Caa2-PD probability of default rating.

The outlook remains stable.

Moody's said the one-notch downgrades of Orleans' term loan and revolver are not credit events. They instead reflect the reduced amount of trade payable claims providing support for the senior secured bank debt as compared to when the company emerged from bankruptcy. At that time, the company's trade payables balances were high.

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