Fifth-largest U.S. homebuilder with good geographic positioning in 40 markets across 10 states Subject to various operational issues over the past few years that have contributed to relatively lower profitability compared with peers Substantial "land-long" inventory to supply future growth Leverage is high relative to industry peers and we expect it to remain in excess of 6.0x over the next two years After successfully prefunding its senior unsecured notes due 2015, the company has no further material debt maturities until September 2017. Our stable outlook on KB Home reflects our expectations that the U.S. housing market recovery will gradually continue and new home sale volume will increase due to firm supply and demand dynamics. Furthermore, we believe the company's geographic
