Moody's placed all the ratings of Arizona-based AV Homes Inc., which include its B3 corporate family rating and B3-PD probability of default rating, under review for upgrade after its definitive agreement to merge into Taylor Morrison Home Corp.
The rating agency's decision takes into account the prospect of AV Homes integrating into a "larger, more diversified and more highly-rated" homebuilder.
The review will assess the merged entity's credit metrics, in particular, debt to capitalization and interest coverage and evaluate the estimated $30 million synergies.
