S&P downgrades Standard Pacific

Standard & Poor's said it lowered Standard Pacific Corp.'s corporate credit and senior unsecured ratings to BB- from BB and its senior subordinated debt to B from B+.

The outlook remains negative.

The downgrades follow the company's recent quarterly loss and anticipate further pressure on Standard Pacific's liquidity position, the agency said. In addition, the company's bank covenants could come under pressure if additional impairments are incurred, which would diminish the equity base.

S&P said that in spite of these credit negatives, Standard Pacific remains well positioned in its homebuilding markets and management is beginning to achieve some success in reducing excess inventory.

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