Moody's rates Five Point notes B3

Moody's Investors Service said it assigned a B3 corporate family rating and a B3-PD probability of default rating to Five Point Operating Co., LP, a subsidiary of Five Point Holdings, LLC.

Moody's also said it assigned a B3 to the company's proposed $400 million of senior unsecured notes due 2025 and an SGL-3 speculative grade liquidity rating.

The outlook is stable.

The proposed new note offering will be issued both by Five Point and by a co-issuer, Five Point Capital Corp., Moody's said.

The proceeds will be used for general corporate purposes, including the funding of development activities, the agency said.

The ratings reflect Five Point's relative newness as a stand-alone operating entity in its current configuration as a single combined company, although the management team has been managing each of the communities since their inception, Moody's said.

The ratings also consider that Five Point possesses significant, valuable land holdings in the very land-constrained coastal areas of California, the agency said.

The stable outlook is predicated on the belief that the company's liquidity is sufficient to carry it through at least the next two years until critical mass is neared, Moody's said.

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