S&P lifts Associated Material to stable

Standard & Poor's said it revised the outlook on Associated Materials LLC to stable from negative.

The agency also said it affirmed the company's B- corporate credit rating.

The outlook revision follows news that the company is seeking to add $100 million of principal value to its $730 million 9 1/8% senior secured notes due 2017, said Maurice Austin, an S&P analyst.

The company will use the proceeds to repay asset-based lending revolver borrowings and for general corporate purposes.

The revolver repayment will increase liquidity from $80 million to about $180 million, pro forma 2012 year-end, S&P said.

The ratings reflect the company's participation in cyclical residential construction markets and its exposure to volatile raw material costs, the agency said.

The company's meaningful market share in the consolidated vinyl siding industry and its nationwide distribution capabilities somewhat offset these risks, S&P said.

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