S&P: Vulcan on watch

Standard & Poor's said it placed Vulcan Materials Co.'s BBB- corporate credit rating on CreditWatch with negative implications, meaning the rating could be affirmed or lowered following the completion of a review.

The CreditWatch listing reflects a view that demand for aggregates will continue to be weak into 2011 due to still-declining nonresidential construction activity, lower than previous forecast for new housing starts, constraints in certain state budgets and the prospect that enactment of a new highway bill may be delayed beyond 2011, S&P said.

The agency said it expects that weak levels of demand will result in price competition among producers in certain markets, which will likely result in weaker operating performance over the next several quarters for Vulcan.

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