The ratings on KB Home acknowledge demand and pricing pressures that continue to weigh on the company's weak credit and profitability metrics. Additionally, although the company's joint-venture exposure is declining, it remains significant and includes one large joint venture that carries repayment and completion guarantees that could be a potential future drain on cash. The current ratings on the company, however, remain supported by modest recent order and margin improvement, adequate liquidity, and no debt maturities until 2011. Los Angeles-based KB Home is among the largest homebuilders in the U.S., having closed 9,541 homes over the trailing 12 months ended Aug. 31, 2009. Similar to peers, the company's production levels are down substantially (75%) since 2006 peak levels. However, recent
