Moody's cuts Centex, Lennar, Pulte to junk status

Reuters reports:

Moody's Investors Service on Thursday cut its ratings on home builders Centex Corp (CTX.N: Quote, Profile, Research) Lennar Corp (LEN.N: Quote, Profile, Research) and Pulte Homes (PHM.N: Quote, Profile, Research) to junk status, saying it expects bleak housing industry conditions to linger at least until 2009.

The downgrades affect about $9.4 billion of debt and $3.25 billion of commercial paper authorizations, Moody's said.

Key problems facing home builders include rapidly declining orders, high housing inventories, disruptions in the mortgage market and heavy cancellations, Moody's said in a statement.

Affordability issues are also weighing on key markets while confidence is ebbing among potential home buyers, it added.