S&P gives BB to Arcosa notes

S&P said it assigned its BB issuer credit rating to Arcosa Inc. The outlook is stable.

S&P also assigned a BB issue-level rating and 3 recovery rating to proposed senior notes.

“Our ratings on U.S. infrastructure, construction, and transportation products and services provider Arcosa Inc. reflect its multiple businesses that provide some earnings diversity, limited scale within each segment, revenue of about $1.9 billion, and adjusted leverage of 2x-3x,” S&P said in a news release.

The company plans to issue $400 million of senior notes and use the proceeds to purchase aggregates company StonePoint Materials for $375 million. Proforma for this transaction, S&P said it expects adjusted leverage to be 2.1x for 2021.

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