Moody's Says U.S. Homebuilders Still Face Major Risks

Moody's said today that despite some improvement in U.S. home sales, housing starts, and other key metrics, U.S. homebuilders still face major risks. The firm expects homebuilders to post combined operating losses of more than half a billion dollars in 2010.

Moody's VP and Senior Credit Officer, Joe Snider said, "We expect most homebuilders to continue generating pre-impairment operating losses over the next 12 to 18 months."

On a more positive note however, the macroeconomic and homebuilding industry news releases, which were gloomy late last year and early this year, have actually seemed to tilt more to the positive column in recent months, the Moody's report said.

Related Stocks:

• SPDR S&P Homebuilders (NYSE: XHB)
  
• Ryland Group Inc. (NYSE: RYL)
  
• NVR Inc. (NYSE: NVR)
  
• Meritage Homes Corporation (NYSE: MTH)
  
• Lennar Corp. (NYSE: LEN)
  
• Toll Brothers Inc. (NYSE: TOL)
  
• Standard Pacific Corp. (NYSE: SPF)
  
• DR Horton Inc. (NYSE: DHI)
  
• KB Home (NYSE: KBH)
  
• M/I Homes, Inc. (NYSE: MHO)
  
• Pulte Homes Inc. (NYSE: PHM)
  
• Beazer Homes USA Inc. (NYSE: BZH)
  
• Hovnanian Enterprises Inc. (NYSE: HOV)
  
• MDC Holdings Inc. (NYSE: MDC)

You May Also Be Interested In

• Goldman Sachs Boosts Numbers on PVH Corp (PVH) After Q1 Beat
• Sterne Agee Raising PT & Estimates on Hewlett-Packard (HPQ); Surprisingly Strong Quarter
• Barclays Adjusting Estimates and Price Target on Bank of Montreal (BMO); Earnings Debate: Everything But Retail

Create E-mail Alert Related Categories

Analyst Comments

Related Entities

Standard & Poor's

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?

Follow StreetInsider.com On Twitter