Moody’s raises U.S. Concrete, notes

Moody's Investors Service said it upgraded U.S. Concrete, Inc.’s corporate family rating to B1 from B2, probability of default rating to B1-PD from B2-PD and senior unsecured notes to B2 from B3.

The speculative grade liquidity rating was affirmed at SGL-2.

The outlook was revised to stable from positive.

Moody’s said the upgrades reflect U.S. Concrete's growth in size and scale and improving credit metrics.

Adjusted debt-to-EBITDA is expected to be less than 3 times by year-end 2017, which accounts for the full-year benefit of its 2016 acquisitions following the company's $400 million senior note offering in June. Adjusted debt-to-EBITDA has been declining since year-end 2013 when this metric was 5.2 times.

Going forward, the agency said it expects U.S. Concrete to maintain adjusted debt-to-EBITDA below 3.5 times even as the company executes its growth strategy.

The company's leading position within its served regions as well as the positive momentum in the building materials industry also support the upgrades, Moody’s added.

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