The ratings on Ashton Woods USA LLC reflect the company's smaller, less-diversified platform (relative to peers), which will continue to see margin and interest coverage pressure as the housing market remains strained. Management has appropriately focused on managing inventory levels, primarily through prudent speculative inventory policies that have helped to keep debt levels under control. Liquidity is limited, but adequate, and has benefited from the company's ability to manage its balance sheet thus far in the cycle. Atlanta, Ga.-based Ashton Woods is a privately held homebuilder that is structured as a limited liability company. The company is owned by Toronto, Ont.-based Great Gulf Group of Cos., which is also a private entity. Ashton Woods operates 44 active communities in Atlanta,
