S&P upgrades Taylor Wimpey

Standard & Poor's said it raised the long-term corporate credit rating on Taylor Wimpey plc to BB- from B+, along with its senior unsecured debt rating on its outstanding £165 million senior notes due in 2015 to BB- rating from B+.

The recovery rating on this instrument is unchanged at 3, indicating 50% to 70% expected recovery in a default.

The outlook is stable.

The upgrade reflects Taylor Wimpey's strengthened capital structure over the past 12 months, S&P said.

The upgrades also consider improvements in the company's operating margins and a lower cost of debt, which support higher funds from operations, the agency said.

In terms of cash flow generation, S&P said it believes that operating margins should continue to improve in 2012.

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