April 26, 2007 / 2:58 PM / 13 years ago

US homebuilder cash flows a ratings threat-Moody's

 By Neil Shah
 NEW YORK, April 26 (Reuters) - U.S. home builders' meager
cash flows may pose a threat to their credit ratings, Moody's
Investors Service said on Thursday.
 Less than half of Moody's rated home builders posted
positive cash flows for the year through the end of 2006, which
is likely to make it difficult for them to comply with
indenture covenants, the credit agency said in a report.
 This "underscores a potentially serious problem and signals
that their current ratings may be too high," said Moody's Vice
President Joseph Snider.

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