S&P rates Forterra B, loan B+

S&P said it assigned its B corporate credit rating to Forterra Inc.

The outlook is stable.

At the same time, the agency assigned its B+ issue-level rating (one-notch higher than the corporate rating) to Forterra's proposed $1 billion first-lien term loan due 2023. The recovery rating is 2, indicating an expectation of substantial (70% to 90%; lower end of the range) recovery for lenders in the event of a payment default.

S&P does not rate the company's proposed $300 million ABL facility.

"The stable outlook on Forterra Building Products reflects our view that the company will remain highly leveraged, with debt-to-EBITDA leverage of more than 5x pro forma for the transaction," S&P credit analyst Pablo Garces said in a news release.

"Our base case scenario assumes the company will not undertake any further large-scale acquisitions or dividends in 2016."

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