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Fitch: home builders’ liquidity “adequate”

September 30, 2010 03:00PM

Liquidity for U.S. home builders is still “generally adequate,” despite little demand for housing, according to a new report from Fitch Ratings. “Fitch is not convinced that demand will collapse further,” the report says, cautioning, though, that home builders should take note that the tax refunds they have been taking advantage of in recent years can’t be counted on to bulk up their cash flows in 2011. “It is prudent for home builders to maintain or improve their liquidity positions,” said Robert Rulla, director of Fitch. “Housing activity is likely to stay at a slow trickle through the fall.” TRD