S&P: Ryland convertibles BB-

Standard & Poor's said it assigned its BB- rating and 4 recovery rating to Ryland Group Inc.'s proposed $250 million convertible senior notes due 2019.

The notes will be guaranteed by substantially all of Ryland's direct and indirect wholly owned homebuilding subsidiaries. Ryland's newly issued notes will rank equally with its $1.1 billion of existing senior unsecured notes.

The company intends to use the net proceeds for general corporate purposes. Its next debt maturity is in January 2015 when $126 million 5 3/8% senior notes mature.

S&P said its ratings on Ryland reflect an "aggressive" financial risk profile, which reflects EBITDA-based metrics that remain weak for the rating.

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