S&P places PGT on positive watch

S&P said it placed its ratings for PGT Innovations Inc., including the B+ issuer rating, on CreditWatch with positive implications.

The placement follows Masonite International Corp., rated BB+, agreeing to buy PGT for $3 billion, including its debt, the agency said.

“The placement of the ratings on CreditWatch with positive implications indicates the proposed transaction could potentially benefit PGT's credit quality since it is being acquired by a much larger and higher-rated company. On a stand-alone basis, we expect PGT to continue operating with favorable credit measures on the back of strong sales price realization and stable demand from key end markets,” S&P said in a statement.

The agency said it aims to resolve the positive watch or discontinue its PGT ratings once the deal closes, which is expected before the end of the second quarter of 2024.

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