Moody's lowers Bluegreen

Moody's Investors Service said it lowered Bluegreen Corp.'s corporate family rating to B3 and probability-of-default rating to Caa1 and the $20 million senior unsecured revolving credit facility to Caa2.

The outlook remains negative.

The actions reflect concerns regarding the evolution of Bluegreen's liquidity profile in the near term, absent the renewal of pledged receivables facilities or securitization-type transactions in restrictive credit market conditions, according to the agency.

The B3 corporate family rating assumes an above-average expected family recovery rate, based on the very large proportion of secured debt in the capital structure and the nature and amount of Bluegreen's assets, the agency said.

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