Fitch rates Ryland notes BB

Fitch Ratings said it assigned a BB rating to Ryland Group, Inc.'s $230 million 8.4% senior notes due May 15, 2017.

The outlook is negative.

The approximately $225.4 million in proceeds will be used for general corporate purposes. Fitch said the company is expected to opportunistically pay down near-term debt and, when appropriate, make direct land purchases and/or invest in its joint venture with Oaktree Capital.

The ratings reflect Ryland's successful execution of its business model, moderate financial policies and geographic and product line diversity, the agency said, adding that Ryland has in recent years improved its capital structure, pursued conservative capitalization policies and positioned itself to withstand a meaningful housing downturn.

The ratings also reflect the very difficult housing environment and Fitch's expectations that housing activity will be even more challenging than previously anticipated throughout 2009.

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