S&P downgrades Standard Pacific

Standard & Poor's said it lowered Standard Pacific Corp.'s corporate credit and senior unsecured debt ratings to B- from B+ and its subordinated debt rating to CCC from B- and placed the ratings on CreditWatch with negative implications.

The downgrades acknowledge losses from homebuilding operations, large impairment charges that continue to erode shareholder equity and drive up leverage ratios and constrained borrowing capacity, the agency said.

The CreditWatch placement reflects financial covenant issues that are still unresolved, as well as uncertainty regarding Standard Pacific's financial strategy and the future direction of this undercapitalized company, S&P said.

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