S&P lowers Technical Olympic outlook to negative

Standard & Poor's said it revised its outlook on Technical Olympic USA Inc. to negative and affirmed its existing corporate credit, senior unsecured and senior subordinated ratings.

The agency added that the outlook revision primarily reflects Technical Olympic's significant exposure to oversupplied Florida markets.

The negative outlook also acknowledges the potential that forfeited option deposits and asset impairments could materially reduce shareholders' equity, given Technical Olympic's heavy reliance on lot option agreements and off-balance-sheet joint ventures, S&P said.

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