S&P lowers Vulcan

Standard & Poor's said it lowered its ratings on Vulcan Materials Co., and its subsidiary, Legacy Vulcan Corp.

The agency noted that it lowered the corporate credit and senior unsecured debt ratings to BBB from BBB+.

Concurrently, S&P said it affirmed its A-2 short-term corporate credit and commercial paper ratings on the company.

The outlook is stable.

"The downgrade follows weaker-than-expected sales volumes and earnings in the first quarter of 2009 - reflecting weakening commercial construction activity - and expectations for further reductions in housing starts and continued uncertainty regarding intermediate term infrastructure spending," said S&P credit analyst Thomas Nadramia.

"As a result, it is unlikely in its view that Vulcan will produce sufficient operating earnings to achieve its previous expectation of debt reduction of $400 million to $700 million by the end of 2010."

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