S&P: MDC outlook negative

Standard & Poor's said it affirmed MDC Holdings Inc.'s BBB- corporate credit rating.

The outlook remains negative.

"The ratings reflect MDC management's conservative policies, notably its financial policy, which has emphasized generating cash and maintaining liquidity throughout the current housing downturn," S&P analyst George Skoufis said in a statement.

"Conservative inventory management has also served the company well during this housing downturn, allowing MDC to quickly reduce and liquidate inventory. As a result, MDC has amassed cash exceeding its total debt, and its cash needs are very manageable over the intermediate term."

Ratings also acknowledge the company's geographic concentration and the cyclical nature of the business, which have resulted in credit metrics that are weak for the ratings, the agency noted.

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