Moody's affirms Quality Home

Moody's Investors Service said it affirmed Quality Home Brands' B3 corporate family rating following the recent amendment of its senior credit facility and concurrent equity infusion from its financial sponsors.

At the same time, Moody's said it affirmed the company's first-lien credit facility, term loan and revolver at B2 and its second-lien term loan at Caa2, but downgraded the company's probability of default rating to Caa1 from B3.

The outlook remains negative.

"The affirmation of the corporate family rating reflects the significant covenant cushion provided by the amendment of the credit facility and equity contribution by its financial sponsors. The affirmation also recognizes the significant financial support given to the company by its financial sponsors at a time when the housing market continues to deteriorate and the company's operating performance is moderating," said Kevin Cassidy, senior credit officer at Moody's.

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