S&P upgrades Building Materials

Standard & Poor's said it raised Building Materials Corp. of America's corporate credit rating to BB+ from BB-, along with its $975 million term loan and $250 million senior secured notes to BBB- from BB, both with a recovery rating of 2, indicating that investors can expect to achieve 70% to 90% recovery in the event of a default. The ratings were removed from positive watch, where they were placed in December.

The outlook is stable.

The upgrade recognizes the greater-than-expected progress the company has made in strengthening its credit measures as a result of recent strong profitability and a lower debt burden, S&P said.

The ratings also consider a belief that this new level of performance should be sustainable over the next few years, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.