Moody’s: Building Materials on downgrade review

Moody’s Investors Service said it placed Building Materials Corp. of America’s ratings on review for downgrade, including its Ba2 corporate family rating, Ba2-PD probability of default rating and Ba2 (LGD 4) ratings assigned to its senior unsecured notes.

The review follows news that the company is acquiring Icopal, which has revenues of about €1 billion, from Investcorp Ltd. for about €1 billion.

The combined company is expected to have about $4 billion in sales, an expanded market across North America and Europe and additional product offerings, Moody’s said.

The downgrade review will focus on the company’s financing strategies for the proposed acquisition and its impact on liquidity and debt-credit metrics, the agency said.

Moody’s also said it will review the combined entity’s integration plans and the ensuing impact on operating margins.

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