NEW YORK (Standard&Poor's) May 14, 2007--Standard&Poor's Ratings Services today said that its rating and outlook on KB Home (BB+/Negative/--) are not affected by a recent bid of EUR53.13 per share for its equity stake in Kaufman&Broad S.A. (KBSA; BB+/Negative/--), its publicly traded French subsidiary. KBSA trades on the Euronext Paris exchange. While KB Home's roughly 10.9 million shares represent a 49% equity interest, the company controls 68% of the voting power. KB Home is currently evaluating this offer and alternative strategies, and there is no certainty that a transaction will be consummated. As currently contemplated, we would view a sale of KB Home's interest in KBSA as credit-neutral in the near term, as the
