Fitch Ratings has lowered its issuer default rating on Beazer Homes USA from BB-plus to BB and placed all the Atlanta-based homebuilder's ratings on Rating Watch Negative.The rating agency said the actions reflect "challenging" housing conditions in most of Beazer's markets; credit tightening pressures, "which particularly affect entry-level buyers (a significant customer focus at Beazer)"; negative trends in operating margins; and the expectation of "further deterioration of its credit metrics" into fiscal year 2008. "Possible accounting restatements, an internal board of directors' investigation, and inquiries from the U.S. attorney's office and Securities and Exchange Commission provide added distraction amidst this difficult housing environment," the rating agency said. Fitch can be found online at http://www.fitchratings.com, and Beazer can be found at http://www.beazer.com.

Subscribe Now

Authoritative analysis and perspective for every segment of the mortgage industry

30-Day Free Trial

Authoritative analysis and perspective for every segment of the mortgage industry