S&P: CST outlook negative

Standard & Poor's said it revised the outlook on CST Industries Inc. to negative from stable and affirmed its B long-term corporate credit rating.

"The outlook revision reflects increasing pressure on some of the company's end markets, including industrial markets relating to dry product storage tanks, which could adversely affect its near-term operating performance," S&P analyst Robyn Shapiro said in a statement.

Ratings reflect the company's vulnerable business profile as a participant in the fragmented and competitive metal storage tank market, the agency said.

Ratings also reflect the company's highly leveraged financial profile and modest cash flow protection measures, the agency noted.

As of Dec. 31, total debt-to-EBITDA ratio was about 5x.

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