Moody's upgraded BeazerHomes USA Inc.'s speculative grade liquidity rating to SGL-2 fromSGL-3, and affirmed the company's corporate family rating at .

Further, the agency changed its outlook on the speculativegrade liquidity rating to positive from stable.

The company's probability of default rating was alsoaffirmed at B3-PD.

The upgraded rating reflects the company's improvedliquidity profile, driven by its projected positive free cash flow generationand no notable maturities over the next 12 months, Moody's said.

The positive outlook reflects Beazer's plan to reduce debtsignificantly over the next 12 to 18 months. The agency pointed out that the outlookand rating changes recognize the company's focus on cost management and marginimprovement to turn free cash flow positive. Moody's noted that 20 out of 27rated homebuilders are still free cash flow negative as of March 31.