S&P assigns Woodside Homes notes B

Standard & Poor's said it assigned its B- corporate credit rating to Woodside Homes Co. LLC and its subsidiary Woodside Homes Finance 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 senior 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 will use proceeds from the proposed offering to repay $127.7 million of outstanding senior secured notes.

"The ratings on Woodside reflect the company's 'vulnerable' business profile," S&P said in a news release, adding, "We view the company's financial risk profile as 'aggressive.'"

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