On Nov. 28, 2006, Standard&Poor's Ratings Services affirmed its 'B+' corporate credit rating on Ashton Woods USA LLC (Ashton Woods) and its subsidiary, Ashton Woods Finance Co. At the same time, the 'B-' rating on the company's $125 million senior subordinated notes was affirmed. The outlook is stable (see list). The ratings reflect the company's smaller, less-diversified platform over which to spread its operating costs, particularly as recent expansion efforts have been affected by the housing market weakness, which will weigh on currently sound operating margins. Liquidity is also limited, but adequate. Management has reduced leverage and conservatively manages inventory by limiting speculative homes. Atlanta, Ga.-based Ashton Woods is a privately held homebuilder that is structured as a
