Moody’s: Martin Marietta view to negative

Moody's Investors Service said it affirmed the Baa3 senior unsecured rating and P-3 commercial paper ratings of Martin Marietta Materials, Inc.'s and revised the outlook to negative from stable.

The action follows Martin Marietta's June 26 announcement that it entered into a definitive agreement to acquire Bluegrass Materials Co. for $1,625,000,000 in cash.

Moody’s said the outlook revision reflects its expectation that adjusted debt-to-EBITDA will increase to about 3.5 times as a result of the Bluegrass acquisition, which is above the 3 times adjusted debt-to-EBITDA downgrade trigger and outside of the previous range of expectations.

The agency expects that Martin Marietta will de-lever through adjusted EBITDA growth and moderate balance sheet debt reduction over the next 12 to 18 months.

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