S&P rates Vulcan notes A-

Standard & Poor's said it assigned an A- rating to Vulcan Materials Co.'s proposed $650 million senior unsecured notes and affirmed the A- corporate credit rating.

The outlook is stable.

Proceeds will be used to refinance the remaining bridge loan that was put in place to fund the Florida Rock Industries Inc. acquisition.

The affirmation reflects the agency's assessment that despite credit metrics that are weak for the rating, it expects Vulcan to use its discretionary cash flow to steadily reduce debt over the next several years.

At March 31, the issuer's debt-to-EBITDA ratio was about 3 times.

Ratings reflect the company's leading position in the highly fragmented U.S. aggregates industry, its solid earnings and cash flow, and the favorable supply/demand characteristics of the aggregates industry, the agency said.

These strengths are tempered by Vulcan's relatively high leverage resulting from the acquisition of Florida Rock in late 2007, S&P noted.

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