S&P changes Ryland view to positive

Standard & Poor's said it revised its outlook on Ryland Group Inc. to positive from stable.

At the same time, the agency affirmed the BB- corporate credit rating on Ryland and the BB- issue ratings on its debt. The recovery rating on the senior unsecured debt was revised to 3 from 4, indicating an expectation for a meaningful (50% to 70%) recovery in the event of default.

"The revision of our outlook reflects Ryland's improving credit measures as a result of stronger profitability and volume growth," S&P credit analyst Michael Souers said in a news release.

The agency said it thinks the company's strategy of expanding its platform of active communities should continue to boost operating leverage and will allow the company to participate strongly in the current housing recovery.

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