S&P lowers U.S. Concrete

Standard & Poor's said it lowered U.S. Concrete Inc.'s corporate credit rating to CCC+ from B-and its senior subordinated notes due 2014 to CCC with a recovery rating of 5 from CCC+.

The outlook is negative.

The agency said the downgrade reflects its concern regarding U.S. Concrete's deteriorating operating performance as a result of depressed commercial construction activity and S&P's expectations that the company's liquidity profile will further weaken for the remainder of 2009 and into 2010.

Despite diminished volumes and a difficult pricing environment for ready-mixed concrete, the agency expects borrowing availability on the company's revolving credit facility to remain above $25 million, thus avoiding the springing 1 times minimum fixed-charge covenant. However, S&P said it does expect the cushion above the $25 million availability threshold to come under increased pressure in 2010.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.