S&P: Masco view to negative

Standard & Poor's said it revised the outlook on Masco Corp. to negative from stable and affirmed its BBB corporate credit rating.

The outlook revision reflects the risk that Masco's credit measures could be weaker than expected for the next two years because of a potentially slower recovery in new residential construction, prospects for stalled remodeling spending if consumer confidence wanes, weaker European demand and a still difficult consumer credit environment, S&P said.

Although the ratings consider the housing cycle and Masco's strong liquidity, the agency said it believes that current global uncertainties and sharply rising oil prices may cause a more challenging near-term outlook for consumer-oriented building products demand.

The ratings reflect the company's satisfactory business risk profile that incorporates its leading market positions for a broad range of brand-name products in the home improvement and residential construction markets, S&P said.

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