Fitch drops Standard Pacific

Fitch Ratings said it downgraded Standard Pacific Corp.'s ratings as follows: issuer default rating to BB- from BB, senior unsecured to BB- from BB, unsecured bank credit facility to BB-from BB and senior subordinated debt to B from B+.

The outlook remains negative.

Fitch said that the downgrade reflects the current difficult U.S. housing environment, especially in Standard Pacific's key California and Florida markets, negative trends in Standard Pacific's operating margins, meaningful deterioration in credit metrics and slimming of its liquidity cushion.

The negative outlook for Standard Pacific reflects a more challenging outlook for homebuilders during the balance of calendar 2007, the agency added.

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