William Lyon Homes Inc. (WLH) and Taylor Morrison Home Corp. (TMHC) have announced that they have entered into an agreement under which Taylor Morrison will acquire William Lyon Homes. We are placing all ratings on WLH, including our 'B' issuer credit rating and 'B+' senior unsecured debt ratings, on CreditWatch with positive implications. The CreditWatch placement reflects our view that the transaction could enhance WLH's credit profile given the acquisition by a higher-rated entity. Taylor Morrison announced its intention to acquire 100% of William Lyon Homes. The transaction expands TMHC's footprint into new markets (e.g., Seattle and Portland) and bolsters its presence in existing locales (e.g., Texas and California). Upon completion of the transaction, William Lyon will contribute about one-third
