Moody's: Ryland outlook stable

Moody's Investors Service said it affirmed Ryland Group, Inc.'s corporate family and probability-of-default ratings of Ba3, senior unsecured notes rating of Ba3 (LGD4, 54%) and its speculative grade liquidity rating of SGL-2.

The outlook was revised to stable from negative.

The outlook revision to stable reflects expectation that Ryland's liquidity position will remain reasonably strong over the next 12 to 24 months, according to the agency.

The Ba3 corporate family rating balances the company's relatively large cash position and track record of large positive cash generation against expectation that Ryland's ability to generate continuing robust cash flow may be coming to an end, the agency said.

Ratings reflect the company's ongoing operating losses, which is expected to continue into 2010, its small size relative to its peer group and the cyclicality of the homebuilding industry, Moody's said.

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