The ratings on Ashton Woods USA LLC reflect this small private homebuilder's less-diverse platform relative to peers, along with challenging housing conditions that will continue to place stress on sales trends and earnings. Credit metrics will continue to worsen, and the company could find itself needing another credit facility amendment in the near future. Despite these weaknesses, the company has better-than-average operating margins and has prudently managed inventory, and current liquidity is adequate given its relatively modest capital needs. Atlanta, Ga.-based Ashton Woods is a comparatively small, privately held homebuilder that is structured as a limited liability company. Toronto, Ont.-based Great Gulf Group of Cos., which is also a private entity, owns the company. Ashton Woods currently operates 49 active
