S&P ups Building Materials to BB-

Standard & Poor's said it raised its corporate credit rating on Building Materials Corp. of America to BB- from B+ and its senior secured rating to B+ from B.

The outlook is stable.

S&P said the upgrades reflect greater-than-anticipated debt reduction, which has led to sustainable strengthening of the company's credit profile. In addition, S&P said it believes that certain legal risks associated with the bankruptcy proceedings of Building Materials' parent, G-I Holdings Corp., and the related asbestos litigation pending against Building Materials Corp. have diminished.

"Prospects that debt will continue to be reduced should help sustain cash flow protection measures at current, improved levels," said S&P credit analyst Wesley E. Chinn. "Moreover, the company appears to have adequate legal defenses against asbestos-related liabilities."

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