Standard & Poor’s Ratings Services lowered its outlook on KB Home (NYSE:KBH) to negative today, after the builder agreed to settle several off balance sheet liabilities for a larger amount than the firm had anticipated.The company's rating currently sits at B+, already four levels below investment grade territory.The settlement was related to an agreement with a group of home builders, including KB Home, which had agreed to pay lenders as much as $340 million to settle an issue related to Inspirada, a failed land deal outside of Las Vegas.The company said it would pay between $216 and $240 million to the lenders, which lent the money to the joint venture in 2004 two years before the pinnacle of the housing boom.Shares of KB Home are trading up 0.93% at $11.9.