Fitch rates Toll notes BBB-

Fitch Ratings said it assigned a BBB- rating to Toll Bros., Inc.'s proposed offering of $250 million aggregate principal amount of exchangeable senior notes due Dec. 1, 2032. The outlook is stable.

The issue will be ranked on a pari passu basis with other senior unsecured debt, including the company's $885 million unsecured revolving credit facility.

Fitch said Toll's ratings and outlook reflect the company's well-entrenched market position as the pre-eminent public builder of luxury homes, the successful execution of its operating model that has produced one of the better margins within the industry over a cycle and relatively stable debt-protection measures despite significant erosion in profitability during the extended downside of this cycle.

The company's liquidity position provides a buffer and supports the current ratings.

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