S&P: Taylor Wimpey stable

Standard & Poor's said that it revised the outlook on Taylor Wimpey plc to stable from negative and affirmed the B+ long-term corporate credit rating and issue ratings. The recovery rating on the debt issue remains unchanged at 4, indicating the expectation of average (30%-50%) recovery in the event of a payment default.

The outlook revision reflects the view that the proceeds from the planned disposal of Taylor Wimpey's North American assets are credit positive, S&P said. The outlook considers the company's public announcement that it intends to use most of the proceeds from the transaction to repay £473 million of borrowings.

The capital structure and the financial flexibility of Taylor Wimpey will improve as a result of debt repayments, the agency said.

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