Moody's rates Texas Industries loans Ba3

Moody's Investors Service said it assigned a Ba3 rating to Texas Industries, Inc.'s proposed $200 million senior unsecured credit facility due 2012 and changed the company's outlook to positive from stable.

Moody's affirmed the corporate family rating and $250 million of 7¼% senior unsecured notes at Ba3. The new facility will replace the company's existing $200 million senior secured bank facility due 2010.

The positive outlook is based on the health of the industry in the Southwest and West, and the company's expansion and modernization projects, Moody's said.

The ratings reflect the company's moderate debt, improving profit margins, high barriers to entry and the expected supply-and-demand imbalance for cement, the agency said.

The ratings also reflect the residential housing downturn, higher energy costs and the company's smaller size versus foreign competitors, Moody's said.

Moody's said it expects the issuer to maintain balance sheet leverage below 2 times.

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