S&P stabilizes Standard outlook

S&P said it revised its outlook for Standard Industries Inc., recently renamed Standard Building Inc., to stable from negative and affirmed its BB+ issuer rating, BBB- secured term rating and BB unsecured notes.

“Solid end-market tailwinds have led to improved credit measures, creating some cushion against weaker business conditions expected over the next few quarters. Favorable demand and pricing resulted in solid earnings growth over the last 12 months. That combined with some debt reduction using cash has resulted in adjusted net leverage improving to about 4x. We believe these measures indicate some credit buffer compared against our 4x-5x tolerance for the rating,” the agency said in a press release.

S&P said it forecasts Standard's revenues and earnings to grow about 10% and 8% in 2022, respectively. “Thereafter in 2023, we expect a mid-single-digit percent contraction in revenues and a 10%-15% decline in adjusted earnings.”

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