Fitch upgrades USG

Fitch Ratings said it upgraded the ratings of USG Corp., including the company's issuer default rating, to B+ from B.

The outlook is stable.

Fitch said the upgrade reflects the continued improvement in USG's financial results and credit metrics during 2014 and the expectation that these credit metrics are either maintained or further enhanced in 2015 as the overall U.S. construction sector continues its modest recovery.

The rating also reflects the company's leading market position in all of its core businesses, strong brand recognition, its large manufacturing network and sizeable gypsum reserves. 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, although improving, the company's still high leverage position.

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