Moody's upgrades Ryland

Moody's Investors Service said it upgraded Ryland Group, Inc.’s corporate family rating to Ba3 from B1, probability of default rating to Ba3-PD from B1-PD and senior notes and convertible senior notes to Ba3 from B1 and affirmed the SGL-2 speculative grade liquidity assessment. The outlook is stable.

The agency said the upgrade reflects significant improvement in financial performance due to the company's conservative operating strategy and prudent balance sheet management combined with the ability to spot profitable opportunities while exercising tight cost control measures.

The Ba3 corporate family rating also considers Ryland's size and scale as well as tight cost controls that have resulted in Ryland's ability to improve gross margins and overall operating performance, Moody’s said.

At the same time, the rating takes into consideration the cyclical nature of the homebuilding industry, the agency said.

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