Standard&Poor's Ratings Services' ratings and outlook on Shea Homes L.P. reflect the company's "aggressive" financial risk profile as marked by high debt leverage and low interest coverage metrics. We consider the company's business risk profile to be "weak," given the modestly improving, but still fragile homebuilding market. To a lesser extent, we also view the privately held company's limited transparency and lack of independent board oversight as a negative credit factor. We balance these factors against the extended debt maturity schedule provided by the senior secured note transaction Shea completed in May 2011 and the company's relatively strong competitive position in many of its core markets. Walnut, Calif.-based Shea is a privately held company that ranks among the
