Moody's ups Ryland notes to Baa3

Moody's Investors Service said it raised the ratings on three issues of senior notes of The Ryland Group Inc. to Baa3 from Ba1 and confirmed the company's other ratings. The outlook remains stable.

Moody's upgraded Ryland's senior unsecured issuer rating, $100 million 8% senior notes due Aug. 15, 2006, $150 million 5 3/8% senior notes due June 1, 2008 and $147 million 9¾% senior notes due Sept. 1, 2010.

Moody's confirmed Ryland's Baa3 senior implied rating and Ba2 rated $143.5 million 9 1/8% senior subordinated notes due June 15, 2011.

The upgrades reflect Ryland's decision to attach the guarantees of its major homebuilding subsidiaries to the senior note issues, according to Moody's.

Moody's said Ryland's ratings reflect the continuing improvement in its financial profile, a highly disciplined growth strategy that avoids acquisitions, a conservative land policy, tight cost controls and strong liquidity.

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