NEW YORK (Standard&Poor's) July 24, 2009--Standard&Poor's Ratings Services today assigned its 'BB-' rating to KB Home's new $265 million 9.100% senior unsecured notes due 2017. We also assigned a '4' recovery rating to the notes, indicating our expectation for an average (30%-50%) recovery in the event of a payment default. KB Home will use proceeds from the offering to fund a tender for up to $250 million of its $350 million 6.375% senior unsecured notes due 2011. According to a company press release, KB Home has offered to purchase these notes at a rate of $980 per $1,000 of principal amount. Additionally, KB Home will pay an early tender premium equal to $30 per $1,000 of
