Fitch: KB Home unaffected

Fitch Ratings said its ratings on KB Home (BB+/stable) are not immediately affected following the company's announcement that it has entered into an exclusivity period on an offer by PAI Partners to buy its 49% stake in Kaufman & Broad SA for €55 per share, or roughly $800 million. The transaction could close in the third quarter.

The agency said that going forward, potential ratings actions for KB Home will be influenced by the use of the deal proceeds, the use of free cash flow in fiscal year 2007 and their impact on the capital structure of the company.

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