S&P cuts WCI Communities outlook to negative

Standard & Poor's said it affirmed its BB corporate credit rating on WCI Communities Inc. and revised its outlook to negative from stable.

The agency added that ratings are also affirmed on $650 million of subordinated notes.

S&P said that the outlook revision follows several months of sharp order declines ensuing from a sharp increase in competing inventory in coastal Florida housing markets and more circumspect retirement and affluent homebuyers.

These conditions show no sign of abating in the near term and will negatively affect profitability and coverage measures over the next several quarters, according to the agency.

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