S&P puts Ply Gem on watch

Standard & Poor's said it placed its ratings, including its B+ corporate credit rating, on Ply Gem Industries Inc. on CreditWatch with negative implications.

The rating action followed the company's announcement that it has entered into a definitive agreement to acquire Alcoa Home Exteriors Inc. from Alcoa Inc. (A-/negative/A-2) for a purchase price of about $305 million, the agency said.

Although the acquisition should somewhat improve Ply Gem's business risk profile, S&P said it is concerned that an additional debt-financed acquisition, especially at this point in the housing cycle, may prevent Ply Gem from attaining credit metrics appropriate for the current ratings.

© 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.