S&P Global Ratings changed Toll Brothers Inc.'s ratings outlook to positive from stable and affirmed its BB+ issuer credit rating on the company and its senior unsecured debt.

The rating agency attributed the outlook revision to the homebuilder's continued deleveraging in the lately favorable U.S. housing market, and its attractive earnings-based credit ratios and counter-cyclical cash flows, among other factors.

Ratings also took into account Toll Brothers' good asset coverage, well-staggered maturities, substantially unsecured borrowings and solid liquidity.

The rating agency said the new outlook takes into account its expectation that Toll Brothers will maintain its currently strong credit ratios even if the housing markets and its earnings weaken moderately.

This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.