Moody's cuts D.R. Horton view to negative

Moody's Investors Service said it affirmed D.R. Horton, Inc.'s subordinated notes at Ba1 and its senior notes at Baa3 and changed the outlook to negative from stable.

The negative outlook reflects the agency's expectation that Horton's credit metrics will continue to erode as homebuilding industry conditions are expected to be challenging throughout 2007 and that any recovery in 2008 is likely to be sluggish.

The affirmation of Horton's ratings reflect the company's long and consistent prior history of revenue and earnings growth, successful track record of integrating acquisitions, one of the two largest shareholders' equity bases in the homebuilding industry, leading share position in many of the markets it serves, tight cost controls and minimal off-balance sheet obligations, Moody's said.

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