S&P rates Martin Marietta notes BBB+

Standard & Poor's said it assigned a BBB+ rating to the proposed $300 million senior unsecured notes due 2018 of Martin Marietta Materials Inc.

Proceeds will be used to reduce amounts outstanding under its commercial paper program, which helped fund the acquisition of five quarries and a greenfield site from Vulcan Materials Co.

Ratings reflect the company's high proportion of sales to relatively stable publicly funded end uses, its solid presence in several high growth regions of the United States, its long reserve life of 50 years and the strong pricing fundamentals for aggregates, the agency said.

The difficulties in developing new sites due to zoning and environmental restrictions also act as a major barrier to new market entrants, S&P added.

Ratings also reflect cyclical end markets in which the company operates, its mature markets with volume growth dependent on acquisitions and debt-financed shareholder-friendly initiatives, the agency noted.

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