Fitch assigns Doman, bonds B

Fitch Ratings said it assigned a B long-term issuer default rating to Doman Building Materials Group Ltd. The agency also assigned B/RR4 ratings to the company's 2023 and 2026 unsecured bonds. The outlook is stable.

“DBM's IDR and stable outlook reflect Fitch's expectation that leverage levels will be relatively high after lumber prices and demand normalize. Fitch forecasts total debt to operating EBITDA to situate around 5x by YE FY 2022. The IDR also considers Doman's relatively commoditized product offering and thin EBITDA and FCF margins inherent to the two-step building products distribution sector,” Fitch said in a press release.

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