S&P cuts Vulcan Materials to BB
S&P on Friday cut to BB from BBB- its corporate credit and senior unsecured debt ratings on US construction materials firm, Vulcan Materials Co. The agency also lowered to B from A-3 the short-term rating on the company.
The rating actions end a downgrade review on the company initiated on December 20, 2010.
While Vulcan will retain its satisfactory business risk profile, it is unlikely to strengthen operating results and credit metrics to investment-grade levels over the next 12 to 24 months, S&P noted.
The agency expects flat to slightly stronger demand for Vulcan’s products in 2011 with a full rebound possibly starting from 2012. However, uncertainties remain on the company’s operational improvement due to the unclear timing and scope of the new highway bill, high energy costs and the still-sluggish nonresidential construction, the agency said. Published under Cement News
