S&P upgrades USG

Standard & Poor's said it raised its corporate credit rating on USG Corp. to B+ from B. The outlook is stable.

At the same time, S&P raised the issue-level ratings on the guaranteed senior notes one notch to BB. The recovery ratings remain unchanged at 1, indicating an expectation of very high (90% to 100%) recovery in the event of default.

In addition, S&P raised the issue-level ratings on the nonguaranteed senior notes one notch to B-. The recovery ratings remain unchanged at 6, indicating an expectation of negligible (0% to 10%) recovery in the event of default.

"The upgrade reflects our view that improving U.S. housing construction will allow for increased selling prices and higher volume in USG's gypsum and worldwide ceiling segments, through which USG will continue to improve its leverage to about 4.7x by the end of 2014, and to below 4.5x by the end of 2015," said S&P credit analyst Maurice Austin in a news release.

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