S&P lowers KB Home

Standard & Poor's said it lowered its corporate credit and senior note ratings on KB Home to BB from BB+ while it also lowered its rating on the company's senior subordinated notes to B+ from BB-.

The outlook remains negative.

The agency said that the rating actions follow the company's weak first quarter and reflect our anticipation that continued very difficult housing market conditions may further stress KB Home's operations, which are concentrated in some of the country's most challenging housing markets.

Given the current conditions, KB Home's earnings and profitability, as well as its already weak credit metrics, will likely continue to be pressured, S&P added.

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