Fitch downgrades homebuilders |
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Published
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Tue, 28 Aug 2007 23:18
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NEW YORK (AP) - Fitch Ratings on Tuesday downgraded several homebuilders, citing the challenging outlook for homebuilders in light of problems in the home mortgage industry and other factors.Fitch cut Hovnanian Enterprises Inc.'s issuer default rating, senior unsecured and unsecured bank credit facility to 'BB-' from 'BB+.' Fitch also cut the company's senior subordinated notes to 'B' from 'B+' and Series A perpetual preferred stock to 'B-' from 'B+.'The outlook on the ratings remains 'Negative.'Fitch said the downgrade also reflects negative trends in Hovnanian's operating margins and deterioration in its credit metrics.Fitch cut issuer default ratings, senior unsecured, and unsecured bank credit facilities for Centex Corp. and Lennar Corp. to 'BBB' from 'BBB+.' It also affirmed both companies' short-term issuer default and commercial paper ratings at 'F2.'The ratings service also lowered its outlooks for Lennar and Centex to 'Negative' from 'Stable.'Fitch downgraded issuer default ratings, senior unsecured and unsecured bank credit facilities of M/I Homes Inc. and Standard Pacific Corp. to 'BB-' from 'BB.'It also cut M/I's Series A non-cumulative perpetual preferred stock rating to 'B' from 'B+' and Standard Pacific's senior subordinated debt to 'B' from 'B+.'The outlooks on both companies remain 'Negative.'Fitch affirmed its ratings for KB Home, MDC Holdings Inc. and Toll Brothers Inc., but lowered its outlook on the companies to 'Negative' from 'Stable,' citing deterioration in their credit metrics.Fitch affirmed its ratings and 'Stable' outlook for NVR Inc., citing its strong credit protection measures, solid free cash flow generation, balance sheet liquidity and capacity to endure a housing downturn.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Fitch assumes more mortgage defaults 