S&P: Weekley Homes on watch

S&P said it placed the Weekley Homes LLC's B+ corporate credit rating on CreditWatch with negative implications.

Weekley Homes has 47 communities, or about 20% of its inventory, in the Houston market, which represents a higher exposure to the Hurricane Harvey-affected area compared with many of its peers, the agency said.

The company's debt leverage has been high for the rating for several quarters, reducing any buffer in the event of a downturn or market disruption as has just occurred in Houston, S&P explained.

The agency said it will assess Weekley's prospects for reducing debt leverage to less than 5x despite the difficulties the company may face in Houston markets in the aftermath of Hurricane Harvey.

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