S&P cuts Emcor Group to junk

Standard & Poor's said it lowered its corporate credit and senior secured debt ratings on Emcor Group Inc. to BB+ from BBB- and removed the ratings from CreditWatch, where they were placed on Sept. 24. S&P also lowered the senior secured bank loan rating to BB+ from BBB-.

The outlook is now stable.

S&P said the rating actions reflect Emcor's weaker-than-expected profitability, due in part to the challenging commercial construction market; decreases in the recovery of estimated costs upon completion of some projects; increase in labor costs on certain construction work; reduction in labor productivity due to the uncertain construction job market; continued decline in availability of higher-margin discretionary small projects; and, lower margins on work undertaken, on account of increased competition.

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