S&P ups Vulcan Materials view to positive, rates notes BB+

Standard & Poor’s said it revised its outlook on Vulcan Materials Co. to positive from stable and affirmed the BB+ corporate credit rating on the company and the BB+ issue-level ratings on the company’s senior notes.

The recovery rating on the notes remains unchanged at 3, indicating an expectation of meaningful (50% to 70%; high end of the range) recovery in the event of default.

In addition, S&P assigned a BB+ issue-level rating to Vulcan’s proposed $400 million senior unsecured notes due 2025 based on preliminary terms and conditions. S&P assigned a recovery rating of 3 to these notes, indicating that investors can expect meaningful recovery (50% to 70%; high end of the range) in the event of a default.

“The positive outlook reflects our expectation that operating performance will continue to improve such that we are confident that the leverage ratio and FFO to debt can be sustained below 4x and above 20%, respectively,” said S&P credit analyst Maurice Austin in a news release.

© 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.