Moody's confirms CB Richard Ellis

Moody's Investors Service said it has confirmed its B1 senior unsecured rating, its B1 senior secured bank facility rating and its B3 senior subordinated rating of CB Richard Ellis Inc. and revised its outlook to stable from negative.

Moody's said the rating action results from the closing of the Insignia Financial Group acquisition in July 2003, and the substantially completed, successful integration of the two companies. Moody's believes that CB Richard Ellis' larger, more diversified property service platform resulting from the Insignia acquisition will strengthen the company's brand and franchise, and improve cash flow stability.

CB Richard Ellis has successfully reduced its cost structure over the past few years while gaining market share in property brokerage. EBITDA margins have improved consistently, year over year, from 9.8% in 2001 to 11.2% in 2003. Moody's expects operating margins will further improve as the company realizes more synergies from the Insignia acquisition.

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