S&P rates Installed Building BB-, loan BB

S&P said it assigned its BB- corporate credit rating to Installed Building Products Inc.

The rating outlook is stable.

At the same time, the agency assigned a BB issue-level rating (one notch above the corporate credit rating) to the company's proposed $300 million first-lien term loan due 2024. The recovery rating loan is 2, indicating an expectation of substantial recovery (70% to 90%, rounded estimate: 80%) for lenders in the event of a payment default.

"The stable rating outlook on IBP reflects our expectation that the company will be able to improve pro forma credit measures, with a debt-to-EBITDA ratio of less than 3x and FFO to debt of more than 25%, over the next 12 months," S&P credit analyst Pablo Garces said in a news release.

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