Moody's rates Toll Brothers notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to the new $250 million of senior unsecured notes of Toll Brothers Finance Corp., which are guaranteed by Toll Brothers, Inc.

At the same time, Moody's said it affirmed all of the existing ratings of Toll Brothers, Inc., including the corporate family rating at Ba1, senior unsecured rating at Ba1, senior sub debt rating at Ba2 and speculative-grade liquidity rating at SGL-1.

The outlook remains negative.

According to the agency, proceeds from the issuance of $250 million senior unsecured notes will be used to fund a tender offer for up to $150 million of the company's senior notes due in 2012 and 2013 and for general corporate purposes, including the retirement of additional debt.

The ratings are supported by Toll Brothers' Leadership position in its upper end homebuilding niche; its currently strong liquidity profile, as captured in its SGL-1 rating; and an ability to greatly restrict, or even shut off entirely, its land spend for relatively long periods of time without incurring the need to race to catch up when the market turns, the agency noted.

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