Fitch ups USG view to stable

Fitch Ratings said it affirmed the ratings of USG Corp. as follows: issuer default rating at B, secured bank credit facility at BB/RR1, senior unsecured guaranteed notes at BB/RR1, senior unsecured notes at B/RR4 and convertible senior unsecured notes at B/RR4.

The outlook has been revised to stable from negative.

The rating for USG is based on the company's leading market position in all of its businesses, strong brand recognition, its large manufacturing network and sizable gypsum reserves.

Fitch said that risks include the cyclicality of the company's end-markets, excess capacity currently in place in the U.S. wallboard industry, volatility of wallboard pricing and shipments and the company's high leverage.

While Fitch expects to see moderate improvement in housing metrics as well as home improvement spending in 2010, these will likely be offset by the continued decline in commercial construction spending.

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