Lennar's outlook now negative, was stable - Moody's
Lennar's outlook now negative, was stable - Moody's Fri Jun 15, 2007 12:09 PM ET
NEW YORK, June 15 (Reuters) - Moody's Investors Service on Friday changed its rating outlook on Lennar Corp. <LEN.N> to negative from stable, indicating there is greater chance of a rating downgrade over the next 12 to 18 months.
Lennar's operating performance will likely weaken as conditions remain challenging in the home-building industry, Moody's said in a statement.
Lennar, the No. 3 U.S. home builder, has been hurt by a steep downturn in the housing market as climbing interest rates and a crisis in the subprime mortgage area curb demand.
Moody's now rates Lennar's senior unsecured debt "Baa2," the second-lowest investment-grade rating.
Lennar's 6.5 percent notes due in 2016 traded on Thursday at 96.95 cents on the dollar, according to MarketAxess. There were no significant trades on Friday.