Moody's upgraded its ratings on Weekley Homes LLC, with a stable outlook.
Specifically, the homebuilder's corporate family rating was raised to B1 from B2, its probability of default rating was raised to B1-PD from B2-PD, while its senior unsecured debt rating was raised to B1 (LGD4) from B3 (LGD5).
The rating agency said the corporate family rating takes into account its opinion that Weekley Homes' successful asset-lite business model minimizes land impairment risk tied to its long land exposure. Moody's also expects the homebuilder to continue to see solid gross operating margin and improved credit metrics.
The stable outlook factors in the rating agency's expectation that Weekley Homes will continue to diversify its geographic footprint while keeping a conservative capital structure.