S&P raises Howden

S&P said it raised its ratings on Granite US Holdings Corp. (Howden) and its senior secured credit facilities to B from B-. The agency also upgraded the senior unsecured notes’ rating to CCC+ from CCC. The 3 recovery rating on the senior secured facilities (50%-70%; rounded estimate: 60%) and 6 recovery rating on the unsecured notes (0%-10%; rounded estimate: 0%) are unchanged.

Howden continues reporting improved sales and profitability as the economy stabilizes, resulting in robust EBITDA growth, S&P said.

The agency said it forecasts Howden will continue generating strong positive free operating cash flow (FOCF) and trim adjusted leverage to the low-5x area in 2021.

The outlook is stable.

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