S&P: William Lyon notes B-

Standard & Poor's said it assigned a B- corporate credit rating to William Lyon Homes Inc. and a B- rating to the company's proposed $300 million senior unsecured notes.

The agency also said it assigned a 4 recovery rating to the senior unsecured notes, indicating 30% to 50% expected recovery in a default.

The outlook is stable.

The ratings reflect the company's highly leveraged financial profile, marked by low interest coverage and debt-leverage metrics that remain high following its reorganization, S&P said.

The agency said it considers the company's business profile as vulnerable, given William Lyon's relatively small homebuilding platform and its uncertain ability to generate the necessary level of new home sales to reach sustained profitability in the near-term.

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