Shea Homes L.P.'s Proposed $375 Million Senior Unsecured Notes Due 2028 Rated 'BB-' (Recovery Rating: '2')

CENTENNIAL (S&P Global Ratings) Feb. 6, 2020--S&P Global Ratings today assigned its 'BB-' issue-level rating and '2' recovery rating to Shea Homes L.P.'s proposed $375 million senior unsecured notes due in early 2028. The '2' recovery rating indicates our expectation for substantial (70%-90%; rounded estimate: 80%) recovery in the event of a payment default. We expect the company to use the proceeds from this offering, together with available cash, to fund the purchase or redemption of its outstanding 5.875% senior notes due 2023 and pay related expenses. For a more detailed view of our credit opinion, please see our most recent research update on Shea Homes L.P., published April 5, 2019, on RatingsDirect. Criteria Corporates General: Recovery Rating

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