Agency Lowers Bond Rating for Presley
- Share via
NEWPORT BEACH — A major Wall Street credit rating agency on Thursday lowered the bond rating for the Presley Cos., one of the largest home builders in Southern California.
Standard & Poor’s Corp. dropped its ratings on the Newport Beach company’s senior notes to triple-C from single-B-minus. Presley will have trouble paying back its bondholders if revenue doesn’t improve, S&P; said.
“The downgrade reflects concern regarding Presley’s significant loss for 1995, and continued weakness in overall financial measures,” said Standard & Poor’s in its action.
Although Presley sold more than 1,400 homes in 1995, making it one of the largest builders here, it reported a net loss of nearly $40 million, including $26 million in charges from a drop in values of its real estate.
A Presley spokesman said the company is on the rebound. “The bondholders are satisfied, the bonds are trading up, we’re selling houses and buying land,” he said. “We’re generating cash flow and we’re a viable company.”
Inside the business of entertainment
The Wide Shot brings you news, analysis and insights on everything from streaming wars to production — and what it all means for the future.
You may occasionally receive promotional content from the Los Angeles Times.
