Summary: Shea Homes L.P.

Operates within the highly cyclical homebuilding sector Geographic concentration from generating over one-half of revenue in California Smaller scale than many other rated peers Projected credit measures will weaken to over 4x in 2016 before normalizing in 2017 Liquidity remains adequate despite elevated levels of working capital spending and less availability on revolving credit facility in 2016 The stable outlook reflects our expectation for continued recovery in the U.S. housing market, characterized by sound demand fundamentals over the next 12 months. While we expect Shea Homes L.P.'s leverage to temporarily climb to over 4x as the company adds debt and increases land spending to support future growth, we anticipate that leverage will fall back in line to levels that are

...Liquidity remains adequate despite elevated levels of working capital spending and less availability on revolving credit facility in 2016 Outlook: Stable The stable outlook reflects our expectation for continued recovery in the U.S. housing market, characterized by sound demand fundamentals over the next 12 months. While we expect Shea Homes L.P.'s leverage to temporarily climb to over 4x as the company adds debt and increases land spending to support future growth, we anticipate that leverage will fall back in line to levels that are good for the current rating (less than 4x) by the end of 2017....

Summary