S&P lifts Continental Building view to positive

S&P said it revised the outlook on Continental Building Products Inc. to positive from stable and affirmed its BB- corporate credit rating.

The agency also said it affirmed the BB+ rating on the company’s $465 million first-lien senior secured credit facilities, consisting of a $50 million revolving credit facility due 2018 and $415 million term loan due 2020.

The recovery rating on the debt is 1, which indicates 90% to 100% expected default recovery.

The positive outlook reflects the potential for an upgrade within the next 12 months if Continental improves leverage measures to the intermediate category as construction markets continue to improve, the agency said.

Leverage measures are expected to improve further to about 2x by the end of 2016, S&P added.

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