S&P revises Quikrete view to stable

S&P said it affirmed its BB- issuer credit rating on Quikrete Holdings Inc. and revised its outlook to stable from negative.

At the same time, the agency affirmed the BB- issue-level rating on the company's $2.6 billion term loan due 2023. The recovery rating on the debt remains 4, which indicates an expectation of average (30% to 50%; rounded estimate: 45%) recovery in the event of a payment default.

“The affirmation of the BB- issuer rating and revision of the outlook to stable reflect the improvement in leverage measures following Quikrete's November 2016 acquisition of Contech Holdings Inc. and January 2017 acquisition of Rinker Materials Corp. Concrete Pipe division,” S&Ps aid in a news release.

“These acquisitions added significantly to the company's debt and leverage, but the company has since reduced debt leverage to 5.2x for the year ended June 30, 2018 (just slightly above the 4x-5x range we view as in line with the rating).”

© 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.