OVERVIEW We believe for-sale housing conditions are bouncing off the bottom, but the recovery remains tepid and fragile. Well-positioned builders should be able to garner greater market share, given recent investments in new communities and still adequate liquidity. Los Angeles-based KB Home announced a tender offer for portions of its 2014 and 2015 senior note maturities that will be financed with a new senior note. We affirmed KB Home's 'B+' corporate credit rating and assigned our 'B+' issue rating and '4' recovery rating to its proposed $250 million senior notes. Our ratings primarily reflect the company's highly leveraged financial profile stemming from the severe housing downturn that has substantially reduced KB Home's revenues and EBITDA The negative outlook reflects the
