Fitch affirms Pulte, Centex; outlook up to stable

Fitch Ratings said it affirmed PulteGroup, Inc.'s ratings as follows:

• Pulte's issuer default rating at BB+; senior unsecured debt at BB+; and unsecured bank credit facility at BB+; and

• Centex Corp.'s issuer default rating at BB+; and senior unsecured debt at BB+.

The outlook has been revised to stable from negative.

Following the August 2009 closing of its merger with Centex, Centex became a wholly owned subsidiary of Pulte, the agency stated, adding that Pulte assumed Centex's unsecured notes, which now benefit from the guarantees of Pulte's homebuilding operating subsidiaries.

The rating affirmation for Pulte reflects the company's broad geographic and product diversity, a long track record of adhering to a disciplined financial strategy and somewhat more recently an aggressive growth strategy, the agency said.

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