The ratings on KB Home reflect the company's growing market position and more clearly focused strategy, increased penetration within its core markets, good geographic diversity, and improving profitability. These credit strengths are tempered by a moderately aggressive financial profile, as well as an opportunistic growth strategy. Los Angeles-based, KB Home has grown its housing operations significantly over the past five years, and is currently one of the largest homebuilders in the U.S. This growth to almost 25,000 unit deliveries and $4.5 billion in revenues in 2001 has been accomplished by acquiring several fairly sizeable, but well-positioned private competitors in a number of key housing markets, while also repositioning the company's core business to achieve improved market penetration and profits. KB
