Fitch rates Standard Pacific notes B+/RR4

Fitch Ratings said it assigned a B+/RR4 rating to Standard Pacific Corp.'s proposed offering of $300 million principal amount of senior unsecured notes.

The company expects that the notes will have a 10-year maturity.

The outlook is stable.

Standard Pacific intends to use the net proceeds for general corporate purposes, which may include land acquisition and development, home construction, repurchases of the company's common stock and other related purposes.

Fitch said the rating is influenced by the company's execution of its business model, land policies, and geographic, price point and product line diversity. Risk factors include the cyclical nature of the homebuilding industry and the company's somewhat aggressive land strategy. The company's liquidity position has also weakened over the past year as the company continues to increase land and development spending.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.