Rating on Six Home Builders Cut

New York, NY, August 29, 2007-- Fitch Ratings cut its bond ratings on a six home builders, citing challenges in the housing market and deterioration in builders' operating margins and credit profile.

The ratings agency also changed a number of the builder's debt outlooks to negative, indicating a rating cut is likely over the next one to two years.

Downgrades included Centex Corp. and Lennar Corp., which were both cut one notch to "BBB," the second lowest investment grade, from "BBB-plus." The outlook on both builders was also revised to negative from stable.

Hovnanian Enterprises Inc. was cut deeper into junk territory, dropping two notches to "BB-minus," three levels below investment grade, from "BB-plus." The outlook on the builder remains negative.

Standard Pacific Corp., M/I Homes Inc. and Meritage Homes Corp. were also cut one notch each to "BB-minus," from "BB." Standard Pacific and Meritage's outlooks were also revised to negative, from stable, while M/I's outlook remains negative.

D.R. Horton, Inc.'s outlook was also revised to negative, from stable, indicating the "BBB-minus"-rated home builder is more likely to be cut into junk territory.

The outlook on KB Home's "BB-plus" debt was also changed to negative, from stable.

MDC Holdings, Inc. was affirmed at "BBB," and its outlook changed to negative from stable, while NVR, Inc.'s "BBB" rating was unchanged and its outlook affirmed at stable.

Toll Brothers, Inc. and Ryland Group, Inc. both had their outlook changed to negative, from stable. They are rated "BBB," and "BBB-minus, respectively.