S&P cuts Rhodes loans to B-

Standard & Poor's said it revised the outlook for Rhodes Cos. LLC to negative from stable and affirmed its B corporate credit rating. S&P also lowered the rating on the company's second-lien bank debt to B- from B.

The outlook revision was prompted by weaker-than-expected third-quarter results for the privately held homebuilder and developer with a heavy concentration in the Las Vegas market, according to the agency.

S&P said extremely competitive local and broader market conditions are further pressuring performance and eroding the company's previously sound liquidity position. The agency said, as a result, it is likely that the covenants related to the company's secured bank facilities will need to be modified.

The issuer's adjusted leverage metrics remain very high at 13 times debt-to- EBITDA, S&P said.

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