Moody’s ups Weekley Homes

Moody’s Investors Service said it raised the corporate family rating and senior unsecured notes of Weekley Homes, LLC to Ba3 from B1 and the probability of default to Ba3-PD from B1-PD.

“The upgrade reflects Moody’s expectation of continued improvement in credit metrics through 2022, including debt to book capitalization trending to 35%, as a result of increased retained earnings, and EBIT to interest increasing to 6.8x,” the agency said in a press release.

Moody’s said it sees Weekley Homes generating about $7 million of free cash flow in 2021 and $46 million in 2022 while maintaining adequate liquidity over the same period. Besides the $116 million of unrestricted cash at Sept. 30, the company had full availability on its $400 million unsecured revolver.

The outlook remains stable.

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