Moody's may cut Horton, Ryland

Moody's Investors Service said it placed the ratings of D.R. Horton, Inc. and Ryland Group, Inc. under review for downgrade, including the companies' Baa3 rating on senior unsecured notes and Horton's Ba1 rating on senior subordinated notes.

The agency said it would review the companies' ability to reduce inventory, generate cash flow and cut costs.

Also under consideration are whether the companies are conforming debt structures to the current business environment and whether they are maintaining cushions in their bank covenant compliance tests, Moody's said.

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