Atlanta-based Ashton Woods USA's credit metrics have weakened to 6.4x in the first quarter of 2018 from 5.1x at fiscal year-end 2017, but remain appropriate for the rating, due to increased debt to fund organic growth and working capital needs. Earnings and cash flow have remained relatively stable, with an enhanced focus on entry-level markets as the company rolled out its new brand, Starlight Homes. We are affirming our 'B-' corporate credit rating on Ashton Woods. The outlook is stable. In addition, we are affirming our 'B-' issue-level rating on the company's senior unsecured credit facilities. We are revising our recovery rating on the debt to '3' from '4', to reflect higher recovery prospects based on current inventory levels, resulting
