Moody's swings Five Point view to positive

Moody's Investors Service said it changed Five Point Operating Co., LP's outlook to positive from stable and upgraded the company's speculative grade liquidity rating to SGL-2 from SGL-3.

The agency said the outlook reflects an expectation that Five Point is at an inflection point to accelerate revenue growth and improve profitability and will remain committed to a conservative approach to balance sheet management. The outlook considers the company's land inventory and demand for its homesites that are currently under development for delivery in 2021 and 2022.

“The upgrade of Five Point's speculative grade liquidity rating to SGL-2 from SGL-3 reflects Moody's expectation of good liquidity over the next 12 to 18 months. At March 31, 2021, Five Point had approximately $229 million in available cash and approximately $125 million of availability under its unsecured revolving credit facility (unrated) that expires in April 2024,” Moody’s said in a press release.

Moody's also affirmed Five Point's B3 corporate family rating, B3-PD probability of default rating, and B3 rating on the company's senior unsecured notes.

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