Moody's cuts D.R. Horton to junk

Moody's Investors Service said it assigned D.R. Horton, Inc. a corporate family rating of Ba1 and lowered the senior unsecured notes lowered to Ba1 (LGD4, 55%) from Baa3 and senior subordinated notes lowered to Ba2 (LGD6, 96%) from Ba1.

The ratings were taken off review for downgrade, where they had been placed on Oct. 31.

The outlook is negative.

Moody's said the downgrade stems from its assessment that even if Horton continues to outperform many of its peers, the agency's expectations about its fiscal 2008 and 2009 performance do not conform to that of an investment grade company.

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