Fitch rates Lennar notes BBB

Fitch Ratings said it assigned a BBB rating to Lennar Corp.'s $200 million senior unsecured floating-rate notes due August 2007.

The outlook is positive.

Interest on the notes will be at Libor plus 50 basis points. The issue will be ranked on a pari passu basis with all other senior unsecured debt.

Proceeds from the new debt issue are expected to be used for the paydown of revolving credit facility debt incurred subsequent to May 31, 2004 and for other corporate purposes.

Fitch said the ratings and outlook reflect Lennar's continuing solid financial performance and the expectation that the company's credit profile will be maintained as it executes its business model and continues to grow. The ratings also reflect Lennar's very strong track record over the past 30 years and through many past homebuilding cycles, management's sound operating and financial policies, the company's well positioned, low-basis land holdings in attractive growth markets, and its capacity to withstand a meaningful housing downturn.

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