S&P gives WCI notes B

Standard & Poor's said it assigned a B- corporate credit rating to WCI Communities Inc.

The outlook is stable.

At the same time, S&P assigned a B issue-level rating and a 2 recovery rating to the homebuilder's proposed offering of $200 million of unsecured notes due 2021. The 2 recovery rating indicates prospects for a substantial (70% to 90%) recovery of principal for senior unsecured noteholders in the event of payment default.

The company plans to use proceeds from the notes offering to retire $125 million of outstanding senior secured notes. The remaining proceeds of about $71.5 million, net of fees, will be used for general corporate purposes, including future land acquisition and development, and home construction.

"The ratings on WCI reflect the homebuilder's vulnerable business risk profile characterized by its small, geographically concentrated operating platform," S&P credit analyst Susan Madison said in a news release.

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