Fitch Downgrades Pulte's IDR

Fitch Ratings has downgraded from BBB-plus to BBB the issuer default rating of Pulte Homes Inc., as well as the company's senior unsecured debt and unsecured bank credit facility ratings.The Rating Outlook is Negative. "The downgrade reflects the continued difficult U.S. housing environment, negative trends in operating margins, and current deterioration in credit metrics," Fitch said. In the most recent quarter, Pulte took $749 million in impairments and land-related charges, and as of June 30 had total on-balance-sheet land-related charges of $1.24 billion since the beginning of 2006, or roughly 17.2% of total shareholders' equity, according to the rating agency. The negative outlook for Pulte reflects the "more challenging outlook" for homebuilders, expected near-term deterioration in credit metrics, pressures from mortgage credit tightening, and continued high cancellation rates (which add to speculative inventory totals), Fitch said. The rating agency can be found online at http://www.fitchratings.com.