S&P: KB Home unchanged

Standard & Poor's said its corporate credit and debt ratings and negative outlook on KB Home (BB+/negative) are not currently affected by the company's recently announced weak quarterly operating results.

During KB Home's second fiscal quarter ended May 31, continued weak demand and competitive pressure combined to put further pressure on the company's pricing and margins, the agency said.

S&P said that these factors contributed to $308.2 million of additional non-cash charges to write-down inventory, which resulted in a $149 million net loss for the company during the quarter.

While conditions remain extremely challenging, KB Home's efforts to enhance liquidity by generating cash through operations and the pending sale of its French subsidiary, Kaufman & Broad SA (BB+/Watch negative), support the existing ratings, S&P said.

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