Fitch: Standard Pacific outlook negative

Fitch Ratings said it affirmed Standard Pacific Corp.'s issuer default rating BB, senior unsecured debt BB, unsecured bank credit facility BB and senior subordinated debt B+.

Fitch also revised the outlook to negative from stable.

The outlook reflects the more challenging outlook for homebuilders, slipping credit metrics for the company and pressures from credit tightening for particularly entry-level buyers and high cancellation rates, Fitch said. The company also keeps debt levels higher than its peers, the agency said.

The ratings are based on the company's execution of its business model, relatively conservative land policies, and geographic and product line diversity. The ratings also reflect the company's aggressive but controlled growth strategy, its capitalization, size and heavy albeit diminished exposure to California markets, the agency said.

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