S&P: Ashton Woods outlook negative

Standard & Poor's said it revised the outlook on Ashton Woods USA LLC and its subsidiary, Ashton Woods Finance Co., to negative from stable. The companies' B+ corporate credit ratings and B- $125 million senior subordinated notes were affirmed.

The agency said the outlook revision reflects its expectation that the deepening housing market downturn will pressure Ashton Wood's key credit metrics and potentially reduce currently adequate liquidity. In addition, the recently announced departure of the company's chief financial officer could potentially place more demands on an already lean management team.

The affirmed ratings acknowledge the company's smaller, less-diversified platform, S&P said, although these weaknesses are currently offset by consistent and prudent inventory management and a moderate leverage profile.

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