Fitch affirms Standard Pacific

Fitch Ratings said it affirmed Standard Pacific Corp.'s BB issuer default rating, BB $1.45 billion senior unsecured notes, BB bank facility and B+ $150 million senior subordinated notes.

The outlook was revised to stable from positive. A positive outlook was predicated on the assumption that credit metrics would further improve and then be generally maintained for a reasonable period of time. Fitch said the prospects of that occurring over the next few quarters or even next 12 months now appear unlikely due to a broadly deteriorating housing market.

The agency said ratings for Standard Pacific are based on the company's successful execution of its business model, relatively conservative land policies and geographic and product line diversity.

Risk factors include the inherent cyclicality of the homebuilding industry, Fitch said, and the ratings also reflect Standard Pacific's aggressive growth strategy, capitalization, size and still somewhat heavy (although diminished) exposure to California markets.

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