S&P drops William Lyon

Standard & Poor's said it lowered its corporate credit rating on William Lyon Homes to SD (selective default) from CC.

The agency said it also lowered its issue-level rating on each of William Lyon's senior unsecured debt issues to D from C while its five recovery rating remains unchanged.

The rating actions follow the closing of the company's below-par tender, which S&P said it views as tantamount to a default given the distressed financial condition of the company.

S&P added that it will continue to rate William Lyon so long as sufficient information is made available, noting that it expects to raise the corporate credit rating to CCC- with a negative outlook soon.

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