California firm posts ninth loss

Bloomberg

The net loss narrowed to $396.6 million, or $1.65 a share, in the fourth quarter from $440 million, or $6.10, a year earlier, the Irvine, California-based company said Friday in a statement.

The U.S. housing slump is in its fourth year and the prospect of further price declines has made it harder for homebuilders to find buyers. Sales of new homes fell in December to the lowest on record, and U.S. foreclosure filings last year jumped 81 percent to 2.3 million, also a record.

Standard Pacific was placed under review for downgrade by Moody’s Investors Services analysts led by Joseph Snider on Feb. 4. The ratings company said the review would focus on Standard Pacific’s ability to generate cash flow, manage liquidity and comply with bank covenants.

The macro environment will continue to be unsupportive, and that access to credit - both for the industry and for its customers - will tighten," the Moody’s analysts said.

Home prices and sales are tumbling even as mortgage rates are near all-time lows. The average U.S. rate for a 30-year fixed home loan is 5.16 percent this week, down from 5.25 percent a week earlier. The rate dipped to 4.96 percent during the week of Jan. 15, the lowest ever recorded.U.S. foreclosure filings exceeded 250,000 for the 10th straight month in January as falling prices trapped owners in homes worth less than the mortgage. A total of 274,399 properties got a default or auction notice or were seized by banks. It was the 37th straight year-on-year increase in filings.