Homebuilder fails to make interest payment for second time

Standard & Poor’s yesterday downgraded US homebuilder William Lyon Homes from CC- to D following its failure to make an interest payment due on 1 October on its 10.75% senior notes due 2013.  

WLH was due to make a payment of $7.5 million on its $138.8 million notes, and still has a 30-day grace period to make the payment. WLH has form in terms of making delayed interest payments, having failed to make a scheduled $2.9 million interest payment on its 2014 notes just a month ago, before making the payment within the allowed 30-day grace period.

WLH faces a challenging environment currently, with its operations centred on California, Arizona, and Nevada, the last two regions in particular being hit hard by weak housing markets.