S&P raises Vulcan Materials

S&P said it raised its rating for Vulcan Materials Co. to BBB+ from BBB, citing improved results that have led to lower leverage. The outlook is stable.

The BBB+ rating illustrates Vulcan's improved profitability over the past 24 months during which aggregates average selling prices increased by about 7%, with a rise in volume of more than 17%. As a result, leverage measures, including debt to EBITDA and FFO to debt, improved to about 2.5x and 34%, respectively, at the end of 2019, S&P said.

“We expect operating performance will improve further due to continued growth in aggregates volumes and pricing, buoyed by healthy U.S. construction markets, in addition to improving profitability in asphalt as liquid costs stabilize,” said S&P in a press release.

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