S&P: Martin Marietta remains on watch

Standard & Poor's said its ratings on Martin Marietta Materials Inc., including the BBB+ corporate credit rating, will remain on CreditWatch with negative implications.

The ratings were initially placed CreditWatch on Dec. 13, 2011, following Martin Marietta's announcement of its unsolicited offer to acquire Vulcan Materials Co.

"The continued CreditWatch listing is in spite of recent court rulings that effectively prohibit Martin Marietta from pursuing its bid of Vulcan Materials for at least four months and potentially for a significantly longer period given timing and cost considerations of restarting such efforts after the court's ruling expires," said S&P credit analyst Thomas Nadramia in a news release.

The agency said it remains concerned about the combination of Martin Marietta's future financial policy, given its willingness to assume more debt leverage in the Vulcan acquisition, and the impact that continued weak aggregates markets will have on its overall financial risk profile.

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