Fitch Ratings has downgraded PulteGroup’s issuer default (IDR) and senior unsecured ratings from BB+ to BB, according to MarketWatch. The outlook has been revised to negative from stable.
The downgrade in the PHM ratings and change in outlook reflect the still very challenging U.S. housing market. PHM's underperformance relative to its peers in certain operational and financial categories penalizes the ratings and influences the outlook.
Macroeconomic housing statistics (new and existing home sales, single-family housing starts) generally remained weak and disappointing through June and July. However, there was a seasonal pick-up in the spring orders compared to the winter. The public builders reported clear improvement in traffic during the spring selling season. New home prices so far this year are relatively stable.
For more information: www.marketwatch.com/story/fitch-downgrades-pultegroup-idr-to-bb-outlook-to-negative-2011-08-22
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