Fitch rates Martin Marietta notes BBB

Fitch Ratings said it assigned a BBB rating to Martin Marietta Materials, Inc.'s offering of $600 million senior unsecured notes.

The offering will be comprised of senior unsecured floating-rate notes due 2020 and senior unsecured notes due 2027.

The notes will rank pari passu with all other senior unsecured debt.

The proceeds will be used for general corporate purposes, including the refinance in full of $300 million principal amount of its floating-rate notes scheduled to mature June 30, Fitch said, and repayment of debt outstanding under the company's revolving credit facility and trade receivables securitization facility.

The outlook is stable.

The ratings reflect the company's leading market position, geographically diverse quarry network, consistent free cash flow generation and solid liquidity, the agency said.

The ratings also consider the relatively stable demand in the intermediate term for construction products, prompted by committed federal government funding of transportation projects and high barriers to entry, Fitch said.

The ratings also reflect the company's operating leverage and high level of fixed costs, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.