S&P lifts Builders FirstSource

S&P said it raised its corporate credit rating on Builders FirstSource Inc. to BB- from B+.

The outlook is stable.

At the same time, the agency raised the issue-level rating on the company's first-lien debt, including the $465 million term loan and $750 million senior secured notes, both due 2024, to BB- from B+.

The recovery rating remains 3, indicating an expectation of meaningful (50%-70%; rounded estimate: 55%) recovery in the event of a payment default.

S&P said the upgrade reflects Builders' improved EBITDA margins at 6.6% as of March 31, compared to 5.6% at the end of 2015.

“We expect further EBITDA margin growth as the company shifts toward higher-margin, value-added product categories,” the agency said 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.