S&P rates Vulcan notes BBB+

Standard & Poor's said it assigned a BBB+ issue-level rating to Vulcan Materials Co.'s (BBB+/A-2) $150 million 10.125% senior unsecured notes due 2015 and the $250 million senior unsecured notes due 2018.

The outlook is negative.

The notes were sold under a private placement to a single investor. Proceeds will be used to repay existing debt balances or for general purposes.

The agency said the ratings reflect the company's leading position in the highly fragmented U.S. aggregates industry, favorable long-term prospects for infrastructure spending, historically solid earnings and cash flow and overall conservative financial policies.

However, Vulcan's exposure to cyclical construction end markets, somewhat high debt leverage for the rating, smaller size and more limited scope of operations than those of many other highly rated industrial companies somewhat temper its strengths, S&P said.

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