S&P rates Toll Bros. notes BB+

Standard & Poor's said it assigned its BB+ issue rating and 3 recovery rating to Toll Bros. Finance Corp.'s proposed offering of $250 million of exchangeable senior notes due 2032.

The agency said the 3 recovery rating indicates an expectation for a meaningful recovery in the event of a default.

The company's indirect parent company, Toll Bros. Inc. and all of the parent's subsidiaries that are also guarantors under its revolving credit facility will guarantee the notes.

S&P said its ratings on Toll largely reflect the company's satisfactory business risk profile, which is supported by a leading market position in the luxury housing segment. The agency said it believes Toll is better positioned to improve profitability relative to most of its homebuilding peers because its sizeable land position and low level of speculative inventory should support anticipated growth in sales volumes.

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