S&P: Armstrong World outlook developing

Standard & Poor's said it revised its outlook to developing from stable for Armstrong World Industries Inc.

At the same time, the agency said it affirmed the BB corporate credit and senior secured ratings for the company.

The outlook change reflects Armstrong's retention of an advisor for a review of its strategic alternatives, the agency said, adding that the ratings on Armstrong reflect the company's leading positions in producing ceiling systems and vinyl and wood flooring, a fair balance between residential and commercial end markets and between new construction and remodeling activities and adequate liquidity.

The ratings also reflect cyclical demand for the company's products, raw-material cost volatility, poor profitability of certain segments and competition from lower-price imports and substitute products, S&P noted.

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