Fitch Downgrades & Withdraws BMHC's 'CCC' IDR

--Issuer Default Rating (IDR) to 'CCC' from 'B-';

--Senior secured debt to 'CCC/RR4' from 'B/RR3'.

The Rating Outlook is Negative. Fitch has simultaneously withdrawn all ratings for this issuer.

Fitch's 'RR4' Recovery Rating (RR) on BMHC's secured term loan and revolving credit facility indicates average (30%-50%) recovery prospects for holders of these debt issues. Fitch applied a liquidation analysis for these RRs.

The downgrade on the senior secured debt applies to BMHC's $540 million senior secured credit facilities, including the company's $200 million secured revolving credit facility.

The downgrades reflect the current very difficult housing environment and Fitch's expectation that housing activity will be even more challenging than previously anticipated throughout calendar 2009. The ratings changes also reflect continued deterioration in credit metrics so far in 2008 and also expected for the balance of the year and into 2009.

The company's financial results have been adversely affected by the meaningful multi-year downturn in the homebuilding market, especially as the large public builders sharply reduced production of new homes to balance supply with demand. Fitch expects that BMHC's margins, credit metrics and cash flow will continue to be under pressure as the housing environment remains difficult for the remainder of the year and into next year. In 2009, Fitch projects that total and single-family starts will decline 22% and 22.6%, respectively.

The Rating Watch Negative has been resolved with BMHC's amendment to its secured bank credit facilities. Fitch originally placed BMHC on Rating Watch Negative on July 31, 2008.

BMHC is one of the largest providers of building materials and residential construction services in the United States. The company serves the homebuilding industry through two recognized brands: as BMC West, the company distributes building materials and manufactures building components for professional builders and contractors in the western and southern states; as SelectBuild, it provides construction services to high-volume production homebuilders in key markets across the country.

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SOURCE: Fitch Ratings

Fitch Ratings Robert Curran, 212-908-0515, New York Robert Rulla, CPA, 312-606-2311, Chicago or Media Relations: Sandro Scenga, 212-908-0278, New York Email: sandro.scenga@fitchratings.com