NEW YORK (Standard&Poor's) Sept. 8, 2005--Standard&Poor's Ratings Services today assigned its 'B+' corporate credit rating to Ashton Woods USA LLC (Ashton Woods) and its subsidiary, Ashton Woods Finance Co. In addition, a preliminary rating of 'B-' is assigned to the company's proposed $125 million senior subordinated debt issuance. The outlook is stable. "The ratings reflect this moderately sized homebuilder's conservative growth strategy and disciplined land acquisition and inventory management," explained Standard&Poor's credit analyst George Skoufis. "The company is somewhat concentrated, but is methodically diversifying its markets and product offerings. Credit considerations include an adequate liquidity position, modestly weaker, but improving, margins relative to its peers, and a meaningful component of projected variable-rate bank debt."
