S&P cuts M/I Homes view to negative

Standard & Poor's said it revised its outlook on M/I Homes Inc. to negative from stable and affirmed the company's BB corporate credit and senior unsecured debt ratings.

The outlook revision follows weak fourth-quarter operating performance and expectations for challenging market conditions throughout 2007, the agency said. Reduced sales in depressed Midwest and Florida homebuilding markets have pressured M/I's operating results and could ultimately result in a violation of the company's financial covenants tied to its revolving credit facility.

Considerations for affirming the existing ratings at this time include M/I's tenured management team, which has historically maintained a moderate financial policy, and the company's current focus on the prudent reduction of inventory and debt levels, S&P added.

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