S&P lifts PulteGroup to stable

Standard & Poor's said it revised the outlook on PulteGroup Inc. to stable from negative.

The agency also said it affirmed its BB- corporate credit and issue-level ratings on the company's debt.

The recovery rating on the company's unsecured senior notes is 3, indicating 50% to 70% expected recovery in a default.

The outlook revision reflects an expectation that improved revenue and profitability trends over the balance of 2012 will likely result in sufficient improvement in credit metrics to support PulteGroup's BB- corporate credit rating, S&P said.

Despite a 7% reduction in active selling communities, PulteGroup posted year-on-year home sales and revenue gains for the second quarter of 2012 due to better absorption trends, the agency said.

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