Standard & Poor’s last week lowered its rating to BB from BBB-minus on La Verne, Calif.’s $46.3 million of debt issued for Brethren Hillcrest Homes. The outlook is negative.

“The rating action is based on an operating profile that has been affected by construction delays, significant cost overruns, and related vacancy issues, all of which have led to very poor liquidity,” said Standard & Poor’s credit analyst Keith Dickinson. “While legal disputes arising from the construction project appear to be heading toward a positive resolution, construction delays and affiliation considerations have affected Hillcrest’s plans to refinance debt and obtain cash for reimbursement of certain capital expenditures totaling approximately $4.5 million.”

Subscribe Now

Independent and authoritative analysis and perspective for the bond buying industry.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.