Troubles Continue For Beazer

Beazer Homes Cut To 'B+', Stays On Negative Watch – Fitch. "Fitch Ratings cut Beazer Homes' (BZH) issuer default rating to 'B+' from 'BB-', senior notes to 'B/RR5' from 'BB-', convertible senior notes to 'B/RR5' from 'BB-' and junior subordinated debt to 'CCC+/RR6' from 'B'. Beazer's ratings remain on negative watch as it has not filed financial results... since its FQ2'07. Beazer has until May 15 2008, to file its financial statements to avoid an event of default under its bank credit facility and bond indentures. Also, there is uncertainty as to the financial impact of Beazer's potential liability as well as regulatory fines related to the violations found within its mortgage subsidiary, Fitch said." (Forbes, Mar. 5th)