S&P ups Summit Materials

Standard & Poor's said it raised its corporate credit rating on Summit Materials Cos. I LLC to BB- from B+.

The outlook is stable.

At the same time, the agency said it raised its issue-level rating on Summit's senior secured credit facilities, which consists of a $50 million revolving credit facility and a $239 million term loan, to BB from B+.

In addition, the agency said it revised the recovery rating on this debt to 2 from 3, reflecting its expectation that lenders can expect to achieve substantial recovery in the event of a payment default.

"The upgrade reflects Summit's execution of an acquisition strategy to date that has increased the company's size, profitability, and geographic diversity while maintaining credit measures that are in line with a higher rating," said S&P credit analyst Thomas Nadramia.

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