S&P rates Building Materials note B

Standard & Poor's said it assigned a B rating with a recovery rating of 5 to Building Materials Corp. of America's $325 million senior secured notes due 2015.

The outlook is stable.

Proceeds from the notes will be used to repay the $325 million bridge loan incurred in connection with the ElkCorp transaction.

The agency said Building Materials' BB- corporate family rating incorporate the narrow focus of the company's product line, the company's vulnerability to petroleum-based raw-material costs, its competitive industry, its aggressive debt leverage measures, certain legal risks associated with the bankruptcy proceedings of parent company G-I Holdings Inc. and the related asbestos litigation pending against Building Materials.

These factors are tempered by the company's position as a significant U.S. producer of asphalt roofing materials, favorable re-roofing market conditions and the company's satisfactory liquidity and discretionary cash flow, S&P said.

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