Fitch drops Tousa to D

Fitch Ratings said it downgraded Tousa, Inc.'s issuer default rating to D from C following the announcement that the company filed for Chapter 11 bankruptcy protection.

The agency said that the following ratings have been affirmed: secured revolving credit facility at CCC/RR3, first-lien secured term loan at CCC/RR3, second-lien secured term loan at C/RR6, senior unsecured notes at C/RR6, senior subordinated notes at C/RR6 and preferred stock at C/RR6.

Fitch said its recovery rating of 3 on Tousa's secured revolving credit facility, $150 million outstanding and $213.9 million of letters of credit outstanding as of Sept. 30, and $200 million secured first-lien term loan indicate good recovery prospects for holders of this debt issue.

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