S&P Global Ratings and Moody's announced their latestratings actions on WCICommunities Inc. following an announcement that the company hasentered into a definitive merger agreementwith Lennar Corp.
S&P placed all of its ratings, including its B corporatecredit rating, on WCI on CreditWatch with positive implications, saying itintends to resolve the CreditWatch placement following the deal's completion.
"Assuming the transaction closes as planned, we wouldsubsequently raise our ratings on WCI to equalize them with our ratings onLennar before withdrawing our corporate credit rating on WCI," S&Psaid in a note.
Meanwhile, Moody's placed the company's ratings under reviewfor upgrade following the deal announcement. Theaffected ratings include the company's B3 corporate family rating and B3-PDprobability of default rating.
Moody's said in a note that the review for upgrade takesinto account its expectations that WCI and its debt will benefit from being apart of a bigger company with a "stronger" credit profile.
S&P Global Ratingsand S&P Global Market Intelligence are owned by S&P Global Inc.