On April 9, 2007, Standard&Poor's Ratings Services affirmed its 'BB+' corporate credit and senior note ratings and its 'BB-' senior subordinated note rating on KB Home and removed them from CreditWatch, where they were placed with negative implications on Oct. 25, 2006. The outlook is negative (see list). The rating actions affect $1.65 billion of senior notes and $750 million of senior subordinated notes. The CreditWatch removals follow the completion of the company's internal investigation into its stock option practices and the subsequent filing of its delayed third-quarter 2006 financials, which cured previously issued notices of technical default. The affirmed ratings acknowledge the company's good liquidity position, specifically its demonstrated ability to generate substantial positive free operating cash
