The ratings on KB Home acknowledge demand and pricing pressures that continue to weigh on the company's weak credit and profitability metrics. Additionally, the company has one of the largest exposures to joint ventures, some of which carry repayment and completion guarantees that could be a future drain on cash. The current ratings on the company, however, remain supported by modest recent improvements in new order activity, a sizeable cash position and credit facility availability, and no debt maturities until 2011. Los Angeles-based KB Home is among the largest homebuilders in the U.S., having closed 10,097 homes over the trailing 12 months ended May 31, 2009 (which is the end of the company's fiscal second quarter). Similar to peers, the
