S&P affirms Ashton Woods

S&P said it affirmed the corporate credit rating on Ashton Woods USA LLC at B-.

The outlook is stable.

In addition, the agency affirmed the issue-level rating on the company's senior unsecured credit facilities at B- and revised the recovery rating to 3 from 4, indicating an expectation of meaningful (50%-70%; rounded estimate: 50%) recovery in the event of a payment default.

S&P said the affirmation incorporates a view that Ashton Woods will achieve revenue growth between 7% and 9% in fiscal 2018.

“We expect the company to have an incremental shift in product mix toward entry-level communities through its Starlight product, a new entry-level brand,” the agency said in a news release.

“We expect that these entry-level communities will bring down the average selling price over time but will result in increased volumes.”

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