Fitch gives Eco Material B, notes B+

Fitch Ratings said it gave Eco Material Technologies, Inc. an expected B long-term issuer default rating following the announcement of the acquisition of Boral Resources from Boral Ltd. and the combination with Green Cement, Inc. The agency also assigned B+/RR3 ratings to Eco's planned $500 million of five-year senior secured notes offering.

“The expected ratings are predicated on the completion of the acquisition and combination, as well as the planned financing activities. The expected ratings will be converted to final ratings after the transactions are completed along with financing arrangements that are consistent with Fitch's expectations,” the agency said in a press release.

“Fitch expects a relatively beneficial operating environment for building materials producers in 2022 and 2023. Fitch expects Eco's revenues to increase high-single digit percentage this year, driven by price increases and volume growth, supported by increased non-residential construction activity and the company's Kirkland, Ariz. plant coming online,” Fitch added.

The outlook is stable.

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