Moody's drops KB Home

Moody's Investors Service said it downgraded all of the ratings of KB Home, including its corporate family rating to B1 from Ba3, its probability of default rating to B1 from Ba3, and its senior notes' rating to B1 from Ba3.

Moody's said it affirmed the company's speculative-grade liquidity rating at SGL-2.

The outlook remains negative.

The downgrades reflect Moody's expectation that the company will continue to post operating losses, remains exposed to asset impairment charges, and that its pace of cash generation will slow as further inventory reduction grows more challenging, the agency said.

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