The ratings on KB Home acknowledge the company's established position in its core Western U.S. housing markets, strengthening geographic diversity, and an improving financial profile. These strengths are tempered by a historically strong appetite for growth through acquisitions and comparatively high exposure to the more economically sensitive first-time homebuyer. Los Angeles, Calif.-based KB Home is one of the largest homebuilders in the U.S., generating just more than $5.0 billion of revenue from 25,500 home deliveries in 2002. Founded in 1957 and long focused in California markets, KB Home's market position has been expanded in recent years by an opportunistic growth strategy, which began in the late 1990's. This growth focused on entering new markets, largely through homebuilder acquisitions. Texas added
