S&P: Bluegreen on watch

Standard & Poor's said it placed its B corporate credit rating for Bluegreen Corp. on Creditwatch with negative implications.

The agency said that the Creditwatch listing reflects its concerns around (1) Bluegreen's operating performance for the second half of 2008 and full-year 2009, and (2) the company's liquidity profile.

Given the current economic environment and contraction of consumer discretionary spending, the agency said it has revised its outlook for timeshare demand and are concerned that profitability will meaningfully decline for the remainder of 2008 and 2009.

S&P said it believes that, in addition to a decline in sales revenue, sales and marketing costs will continue to increase as a percentage of sales, further pressuring the company's EBITDA.

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