Moody's rates Vulcan notes Ba1

Moody's Investors Service said it assigned Ba1 ratings to Vulcan Materials Co.'s proposed senior notes due 2016 and 2021 and affirmed the company's Ba1 corporate family and probability of default ratings and Ba1 ratings on existing senior notes. Moody's maintained the SGL-3 speculative-grade liquidity assessment for the company.

The outlook is stable.

The proceeds from the proposed senior notes due 2016 and 2021 will be used repay existing debt.

The ratings consider the company's high financial leverage and weak interest coverage, the agency said.

The ratings consider Vulcan's leading position in the North American aggregates industry and its regional geographic and end market diversity, substantial revenue streams and large proven reserves, the agency added. The business benefits from high barriers to entry, a stable competitive landscape and diverse end use markets.

At Dec. 31, 2010 the adjusted debt-to-EBITDA ratio was above 7 times.

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