S&P: Toll Brothers view to negative

Standard & Poor's said it revised the outlook on Toll Brothers Inc., and subsidiary Toll Brothers Finance Corp., to negative from stable because it is unlikely that the luxury homebuilder's earnings will improve materially in the next year.

The agency also said it affirmed its BBB- corporate credit ratings and BBB- rating on its $1.5 billion of senior unsecured notes.

The ratings reflect the company's satisfactory business risk profile based on its long-held and well-located landholdings and its leading market position in the luxury homebuilding segment, S&P said.

The company's financial risk profile is intermediate primarily as a result of its relatively robust free operating cash flow in recent quarters, which contributed to the company's sizable cash balance relative to its near-term debt maturities and anticipated working capital needs, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.