NEW YORK (Standard&Poor's) Aug. 22, 2008--Standard&Poor's Ratings Services today lowered its corporate credit ratings on Ashton Woods USA LLC (Ashton Woods) and its subsidiary, Ashton Woods Finance Co., to 'CCC' from 'B'. At the same time, we lowered our rating on the company's $125 million senior subordinated notes to 'CC' from 'CCC+'. All of the ratings remain on CreditWatch with negative implications, where they were placed on Aug. 6, 2008 (see list). We lowered the ratings after the company disclosed that it recorded a large asset impairment in its fourth quarter ended May 31, 2008, that pushed the company's tangible-net-worth below the covenant limits of its credit facility and the indenture governing its senior subordinated notes.
