UPDATE 4-S&P cuts home builders' debt on housing weakness

(Adds action on Beazer Homes, rewrites throughout)

NEW YORK, Feb 15 (Reuters) - Standard & Poor's on Friday cut its ratings on a slew of home builders, saying the weak housing markets will pressure profits and the companies will have to further amend terms of debt facilities with banks.

S&P cut K. Hovnanian Enterprises Inc (HOV.N: Quote, Profile, Research, Stock Buzz), Standard Pacific Corp (SPF.N: Quote, Profile, Research, Stock Buzz) and Beazer Homes USA Inc (BZH.N: Quote, Profile, Research, Stock Buzz) deeper into junk territory. Beazer remains on review for further downgrade.

The rating agency also cut Centex Corp (CTX.N: Quote, Profile, Research, Stock Buzz) to junk. The outlook on Hovnanian, Standard Pacific and Centex is negative, indicating additional ratings cuts may be likely over the next two years.

Home builders have been breaching certain terms in their bank credit facilities as they grapple to sell home inventories as house prices plummet.

Beazer Homes has not filed its earnings reports since March 31, 2007, as it restates earning statements for fiscal 2005 and 2006. The downgrade for review depends on the builder reporting its earnings, S&P said.

S&P cut Beazer's senior unsecured debt one notch to "B," five levels below investment grade, from "B-plus."

Hovnanian's senior unsecured debt was lowered two notches to "B-minus," six levels below investment grade, from "B-plus." Standard Pacific was cut one notch to "B-plus," four levels below investment grade, from "BB-minus."

S&P cut Centex one notch to "BB-plus," one step below investment grade, from "BBB-minus." The outlook is also negative.

(Reporting by Karen Brettell; Editing by Frank McGurty)