William Lyon Homes Inc.'s successful exit from Chapter 11 bankruptcy on Feb. 25, 2012, has allowed it to improve its balance sheet through debt reduction and new equity contributions. We are assigning a 'B-' corporate credit rating to the company and a 'B-' issue-level rating to the company's proposed $300 million senior unsecured notes. We also are assigning a '4' recovery rating on the senior unsecured notes. The stable outlook reflects our view that the company's operating performance will continue to improve as a result of a relatively stronger housing market and adequate liquidity position. As Standard&Poor's Ratings Services previously announced, on Oct. 31, 2012, Standard&Poor's assigned a 'B-' corporate credit rating to William Lyon Homes
