S&P rates Hughes Supply notes BBB-

Standard & Poor's said it assigned its BBB- corporate credit rating to Hughes Supply Inc. and assigned its BBB- senior unsecured rating to Hughes' proposed $300 million senior unsecured note offering due 2014.

The outlook is stable.

"The ratings incorporate both the expectations of improving profitability from a number of initiatives in the intermediate term, as well as the potential for some execution risk from these actions in the near term," said S&P credit analyst Joel Levington. "We expect Hughes to balance its growth initiatives with a supportive capital structure that should enable ratings stability. We also expect management to take a measured approach in implementing its operating plans, although the ratings incorporate some tolerance for short-term missteps."

S&P said demand for these products generally depends on regional economic strength, interest rates, industrial capacity and utilization, new housing starts and corporate profitability.

© 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.