Moody's rates WCI Communities notes Ba3

Moody's Investors Service said it assigned a Ba3 rating to the new $200 million issue of senior subordinated notes of WCI Communities Inc. and affirmed the company's senior implied and issuer ratings of Ba2, as well as the Ba3 ratings on the existing issues of senior subordinated notes. The outlook is stable.

Moody's said the ratings acknowledge the company's valuable land holdings in coastal areas of Florida, steady amenities revenues and fee income from related service businesses, the second highest margins in the industry, strong brand name recognition, seasoned management team, favorable demographic trends and the 58-year history through various cycles.

In addition, Moody's said the ratings recognize that the company's balance sheet is fully stated, in that the company retains on balance sheet 85% to 90% of its land holdings and associated debt as compared to an industry average ownership percentage of between 40% and 50%.

Proceeds of the new debt issue will be used to retire a like amount of bank debt.

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