S&P lowers Ashton Woods view to stable

Standard & Poor’s said it revised the outlook on Ashton Woods USA LLC to stable from positive.

The agency also said it affirmed the company’s B- corporate credit rating, along with its B- rating on its senior unsecured notes.

The recovery rating on the notes is unchanged at 3, indicating 50% to 70% expected default recovery.

The outlook revision reflects the slower pace of leverage improvement versus prior expectations for the company, S&P said.

The company’s leverage is expected to exceed 5x through fiscal year 2016, the agency said.

The ratings also consider the company’s weak business risk profile, its highly cyclical homebuilding industry and smaller size and lesser geographic diversity relative to peers, S&P said.

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