Fitch rates Woodside notes B

Fitch Ratings said it assigned an issuer default rating of B to Woodside Homes Co., LLC, along with a B rating and RR4 recovery rating to its proposed issuance of $200 million senior unsecured notes due 2021.

The outlook is stable.

The proceeds will be used to redeem all of the company's $127.7 million 9¾% senior secured notes due 2017.

The ratings reflect the company's execution of its business model in the current housing environment, improving financial and operating results, customer and price point diversity, adequate liquidity position and the cyclically improving industry outlook for 2013 and 2014, Fitch said.

Woodside emerged from bankruptcy at the end of 2009 with a new senior management team and successfully recapitalized its balance sheet during the third quarter of 2012, the agency said.

The housing recovery should advance this year and next with a continued cyclical rise off a very low bottom, Fitch said.

However, there are still challenges facing the housing market that are likely continue to moderate the early stages of this recovery, the agency added.

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