S&P affirms William Lyon Homes

Standard & Poor's said it affirmed its B+ corporate credit and B senior unsecured debt ratings on William Lyon Homes (WLS) and removed them from CreditWatch, where they were placed with developing implications March 20.

The outlook is stable.

S&P said that the CreditWatch removals follow the recent completion of the merger of WLH Acquisition Corp., an entity owned by General William Lyon and certain trusts, with and into WLS, effectively completing WLS' privatization.

The ratings reflect the company's overall good position within its markets, albeit a geographically concentrated business, attractive margins and an appropriate balance sheet with good liquidity, S&P said, noting that challenging housing conditions are having a negative impact on sales, which will weigh on profitability and interest coverage over the next several quarters, however, debt protection measures are expected to remain acceptable for the rating.

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