S&P: Texas Industries view stable

Standard & Poor's said it revised the outlook on Texas Industries Inc. to stable from positive and affirmed the BB- corporate credit rating.

The outlook revision reflects S&P's assessment, according to the agency, that because of weakening commercial construction and high energy costs, the company's operating performance over the next several quarters will be weaker than expected.

Ratings reflect the company's much smaller scale of operations than global competitors', the cement industry's cyclicality and seasonality, high capital and energy intensity, and concentration in Texas and California.

Supporting the ratings are the high long-term demand for cement in the U.S. relative to total production capacity, good operating margins, adequate liquidity and credit measures that are in line with the rating.

The issuer's total debt-to-EBITDA ratio was 2.9 times at May 31.

© 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.