Moody's: Emcor outlook stable

Moody's Investors Service said it changed Emcor Group, Inc.'s outlook to stable from positive and affirmed its corporate family and probability-of-default ratings at Ba1 and its $375 million senior secured revolving credit facility due 2010 at Ba1 (LGD4, 53%, revised from 46%).

The outlook revision reflects the agency's view that Emcor is unlikely to be upgraded in the next 12 to 18 months given the projected deterioration in the company's end markets, as a large portion of Emcor's sales are exposed to the weakening non-residential construction market.

At the same time, the stable outlook reflects that the company is currently well positioned in its rating category, Moody's said, and Emcor's ratings take into consideration the company's conservative balance sheet, competitive market position, geographic diversification and strong credit metrics.

At the same time, the ratings consider the company's sizable multiemployer pension plan exposure, large bonding position with relatively small revolver back-up and low operating margins, the agency said.

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