S&P lifts Taylor Wimpey, bonds to BB+

Standard & Poor's said it raised its long-term corporate credit rating on Taylor Wimpey plc to BB+ from BB.

The outlook is stable.

At the same time, the agency is raising its issue rating on Taylor Wimpey's bonds due 2015 to BB+. The recovery rating on these bonds remains unchanged at 3, indicating an expectation of "meaningful" (50%-70%) recovery in the in the event of a payment default.

S&P expects to withdraw the issue and recovery ratings on the bond following its redemption in December 2013.

S&P said the upgrades reflect its view that Taylor Wimpey's cash flow and leverage ratios should continue to improve above our previous base-case scenario for 2013 and 2014, supported by sales growth of over 10% and an improvement in EBITDA margins of about 300 basis points.

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