S&P: NCI Building on watch

Standard & Poor's said it placed its ratings, including its B long-term corporate credit rating, on NCI Building Systems on CreditWatch with negative implications.

"The CreditWatch listing follows NCI's announcement of an agreement to acquire insulated panel supplier Metl-Span for $145 million in cash," said S&P credit analyst Thomas Nadramia in a news release.

According to S&P, NCI also announced that it has reached agreement with Clayton, Dubilier & Rice and affiliates, the holders of NCI's convertible preferred shares, to eliminate NCI's quarterly dividend obligation on the preferred shares.

"Based on preliminary information, we expect NCI's financial leverage to increase as a result of the incremental acquisition-related debt," Nadramia said

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