S&P downgrades Crescent

Standard & Poor's said it lowered the corporate credit rating and issue-level ratings on Crescent Holdings LLC and its subsidiaries and coissuers, Crescent Resources LLC and Crescent Ventures Inc., to B- from B.

The recovery rating is unchanged at 3, indicating 50% to 70% expected default recovery.

The outlook is stable.

The ratings reflect the group's weak business risk profile based on the company's transaction-dependent business with a significant portion of revenues tied to speculative development of residential/multifamily projects, S&P said.

Crescent's business is very cyclical and seasonal, the agency said, and the timing of sales can be unpredictable.

However, S&P acknowledged that growth is occurring in the improving single-family housing market and the more stable multifamily housing sector.

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