Moody's upgrades Tri Pointe

Moody's Investors Service said it upgraded the corporate family rating of Tri Pointe Homes, Inc., a subsidiary of the TRI Pointe Group, to Ba3 from B1.

The agency also said it upgraded the company's probability of default rating to Ba3-PD from B1-PD and the rating on TRI Pointe's senior unsecured notes to Ba3 from B1.

The company's speculative grade liquidity rating also was affirmed at SGL-2.

The outlook also was changed to stable from positive.

The upgrades reflect TRI Pointe's strong momentum as evidenced by its growing order book, solid credit metrics and apparently successful integration of the five separate homebuilding brands of the former Weyerhaeuser Real Estate Co., Moody's said.

The company's performance since the acquisition has meaningfully lessened this integration risk, the agency said.

The ratings reflect TRI Pointe's strong performance and healthy credit metrics that have resulted, Moody's said.

The ratings also consider the company's relatively small size in relation to other homebuilders with Ba ratings, the agency said.

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