S&P lifts Crescent notes

Standard & Poor’s said it affirmed the B- corporate credit rating on Crescent Holding LLC and its subsidiaries and co-issuers, Crescent Communities LLC and Crescent Ventures Inc.

S&P also said it revised the recovery rating on Crescent’s $425 million senior secured notes due 2017 to 1 from 3. The 1 recovery rating indicates 90% to 100% expected default recovery, which results in an issue-level rating of B+. That is two notches higher than the company’s corporate credit rating.

The outlook is stable.

The fundamentals in the company’s single-family housing markets are rebounding, S&P said, and multi-family fundamentals are expected to remain favorable over the next year.

Between cash-on-hand and additional borrowings, the company should be able to fund its ambitious planned development spending, the agency said, leading to the stable outlook.

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