Fitch: Lennar, WCI notes BB+

Fitch Ratings said it assigned a BB+ with recovery rating of RR4 rating to Lennar Corp.'s and WCI Communities, Inc.'s $250 million 6 7/8% senior unsecured notes due 2021.

Lennar and WCI are co-issuers on the notes, Fitch said.

On Feb. 10, Lennar completed the acquisition of WCI and WCI became a wholly owned subsidiary of Lennar, Fitch explained.

In connection with the acquisition, Lennar agreed to become a co-issuer with regard to WCI's senior unsecured notes, the agency noted.

The notes will rank pari passu with all other senior unsecured debt of Lennar, Fitch said.

The outlook is positive.

The ratings are based on the company's strong track record over more than 36 years, geographic diversity, customer and product focus, generally conservative building practices and effective utilization of return on invested capital, the agency said.

There has been continuity in Lennar's management during this housing cycle and Fitch said it considers this management team to be the deepest among the public builders within its coverage.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.