Moody’s rates Toll Brothers notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Toll Brothers Finance Corp.'s proposed $350 million of senior unsecured notes due 2025, proceeds of which will be used for general corporate purposes.

The company's Ba1 corporate family rating, Ba1-PD probability of default rating, the Ba1 rating on existing senior unsecured notes and SGL-2 speculative grade liquidity rating remain unchanged.

The outlook is stable.

Toll Brothers Finance is the issuing entity for the senior unsecured notes of Toll Brothers, Inc. (Toll).

The proposed new senior unsecured notes as well as the existing issues of senior unsecured notes are guaranteed both by Toll and by the latter's principal operating subsidiaries. The proposed new notes are pari passu with the existing senior unsecured notes.

The company's adjusted homebuilding debt to capitalization ratio will increase to about 48% from about 44% at July 31, 2015, pro forma for the $350 million note offering.

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