S&P lifts TMM, rates notes BB-

Standard & Poor's said it removed from CreditWatch and raised its corporate credit rating on TMM Holdings LP to BB- from B+ following the successful completion of the company's initial public offering.

The company's newly formed parent, Taylor Morrison Home Corp., has a BB-rating.

The outlook is stable.

The agency also assigned a BB- rating to the company's proposed senior unsecured note issue due 2021 with a recovery rating of 3. S&P also said it revised its recovery rating on the company's existing senior unsecured notes to 3 from 2. The 3 recovery rating indicates 50% to 70% expected default recovery.

The rating on Taylor Morrison's existing senior unsecured notes remains unchanged at BB-.

The upgrade reflects a view that enhanced transparency and improved governance following Taylor Morrison's successful completion of its IPO are positive for credit quality, S&P said.

The ratings also consider the company's larger scale and its concentration in many of the stronger performing U.S. housing markets, the agency said.

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