Abstract: A geographically diversified operating platform with comparably less exposure to oversupplied coastal and southwestern housing markets; Limited exposure to potential off-balance-sheet obligations; and Superior EBITDA-based credit metrics relative to most homebuilding industry peers. Deteriorating earnings as a consequence of very competitive conditions in many of the company's housing markets; Higher leverage levels because impairments have eroded shareholder equity; and Limited liquidity due to weaker-than-anticipated discretionary cash flow and potential covenant pressure. The ratings on Ryland reflect the company's relatively limited liquidity and our expectations for deteriorating housing market conditions to continue pressuring profitability over the next year. Ryland amended its revolving credit facility in June 2008 to provide additional room under its tangible-net-worth covenant. This amendment reduced the size of

Brief Excerpt: RESEARCH Ratings Definitions The Ryland Group Inc. Publication date: 20-Aug-2008 Primary Credit Analyst: Lisa Wright, CPA, New York (1) 212-438-3121; lisam_wright@standardandpoors.com Secondary Credit Analyst: James Fielding, New...

Report Type: Full Report
Ticker: RYL
Issuer: Ryland Group Inc. (The)
GICS: Homebuilding (25201030)
Sector: Corporations, Global Issuers, Homebuilders, Public Finance, Real Estate Companies, Structured Finance
Country: United States
Region: United States
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S&P Credit Research provides analysis on issuers and debt obligations of corporations, states and municipalities, financial institutions, insurance companies and sovereign governments. S&P also offers insight into the credit risk of structured finance deals, providing an independent view of credit risk associated with a growing array of debt-securitized instruments.