Moody's cuts Standard Pacific

Moody's Investors Service said it lowered Standard Pacific Corp.'s corporate family rating to B2 from B1, senior unsecured notes to B2 from B1 and senior subordinated notes to Caa1 from B3. The SGL-3 liquidity assessment was affirmed.

The outlook is negative.

The downgrade was prompted by the company's elevated debt leverage and lingering uncertainty over the ultimate resolution with its banking group of its covenant breaches, Moody's said.

The company's large joint venture exposure, while reduced, remains a continuing risk, the agency added.

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