S&P lowers CPG view to stable

Standard & Poor's said it revised its outlook on CPG International Inc. to stable from positive.

At the same time the agency said it affirmed the B corporate credit rating on the company, as well as the B issue rating and 4 recovery rating on the company's $282 million secured term loan.

"The rating on CPG reflects our assessment of the company's financial risk profile as 'aggressive' and business risk profile as 'weak,' as our criteria define these terms," said S&P credit analyst James Fielding in a news release.

"Our aggressive financial risk assessment is based on our expectation that CPG's revenues will improve only modestly over the next 12 months, in line with our forecast for single-digit growth in U.S. residential and nonresidential construction spending, and that leverage will remain within the 4x to 5x EBITDA range during that period," Fielding said.

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