S&P affirms WCI Communities

Standard & Poor's said it affirmed WCI Communities Inc.'s BB corporate credit and B+ subordinated debt ratings.

The outlook is stable.

S&P said the ratings acknowledge WCI Communities Inc.'s solid position in several coastal Florida markets, its broadened product platform and good debt coverage measures, as EBIT to interest incurred reached a solid 3.4x for the nine months ended Sept. 30.

Debt coverage should benefit further, as the company has repurchased some of its higher-cost debt (10 5/8% subordinated notes, callable in February 2006) in the open market.

These strengths are tempered by the risks associated with geographic expansion and the impact of hurricane activity on several of the company's Florida communities, the agency said.

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