Moody’s: Homebuilders May Lose $500M in 2010
According to this HousingWire article, Homebuilders May Lose $500m in 2010: Moody’s, US home builders will likely lose a combined $500 million in 2010.
According to the article, "US homebuilders still face risks, despite improvements in home sales and housing starts, and Moody’s Investors Service expects building industry's operating losses to worsen by 8% in 2009. Moody’s vice president and senior credit officer Joe Snider expects homebuilders to continue generating pre-impairment operating losses over the next 12 to 18 months. An increase in foreclosures and weak employment figures will contribute to house prices at their currently low levels, and might cause prices to fall more and for a longer period than currently anticipated."
The article quotes Snider as saying "We expect that the industry’s one relatively bright spot — that is, robust cash-flow generation — will keep fading in the year ahead, as inventory liquidation plays itself out and funds from operations remain negative."
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