Ashton Woods USA LLC's credit quality has improved over pre-pandemic levels, as housing market conditions bounce back despite the broader economic impact. We now expect credit metrics into 2021 to be better than we forecast before the pandemic. We are revising our outlook to positive from stable and affirming our 'B-' ratings on the U.S.-based homebuilder. The positive outlook indicates the possibility we could raise our rating during the next year if the company maintains debt to EBITDA below 5x. The outlook on Ashton Woods is positive based on our forecasts that debt to EBITDA will approach 5x. Ashton Woods is rapidly increasing its presence across the entry-level segment, via the emergent Starlight Homes brand. Over the next 12 months,
