Fitch lowers outlook on Beazer Homes |
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Mon, 09 Apr 2007 22:00
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NEW YORK (AP) - Fitch Ratings on Monday cut its outlook on its credit ratings for homebuilder Beazer Homes USA Inc., citing a downturn in the housing market that could affect the company's credit.Fitch lowered its outlook to 'Negative' from 'Stable' and affirmed its 'BB+' credit ratings.'The negative outlook for Beazer reflects the more challenging outlook for homebuilders, the current and expected near-term deterioration in credit metrics for Beazer, and pressures from credit tightening, which particularly affect entry-level buyers (a significant customer focus at Beazer), and high cancellation rates which add to speculative inventory totals,' the ratings service said.Fitch also mentioned the departure of the company's chief financial officer, James O'Leary, and the media focus on the company's mortgage banking activities as two other reasons for the outlook downgrade.Last month, Beazer received a grand jury subpoena for documents as part of a federal investigation of possible fraud in the company's mortgage and financial transactions.Beazer Homes shares rose 86 cents to close at $29.50 on the New York Stock Exchange.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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