Fitch cuts Centex to junk

Fitch Ratings said it downgraded Centex Corp.'s issuer default rating BB+ from BBB, senior unsecured notes to BB+ from BBB, unsecured bank credit facility to BB+ from BBB, short-term issuer default rating to B from F2 and commercial paper to B from F2.

The outlook remains negative.

The downgrade reflects the difficult housing environment, Fitch said. The downgrade also reflects the company's operating margins, further deterioration in credit metrics and erosion in tangible net worth from non-cash real estate charges, the agency said.

Ratings are supported by the company's strong management team, historically conservative financial policy and the strength and geographic diversity of its core homebuilding operations, Fitch noted.

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