OVERVIEW Homebuilding fundamentals remain weak due to low consumer confidence, elevated unemployment levels, a large supply of existing distressed/foreclosed homes, and volatility in the financial markets. As a result, we believe it is unlikely that Shea will be able to materially grow sales absorption levels at its communities and achieve profitability in the near term. We revised the outlook on Shea to stable from positive on our expectations that meaningful improvement in the homebuilding sector is unlikely to materialize in the next 12 months. We also affirmed our 'B' corporate credit and senior secured issue ratings on Shea. NEW YORK (Standard&Poor's) Sept. 15, 2011--Standard&Poor's Ratings Services today revised its outlook on Shea Homes L.P. and its
