S&P drops Builders FirstSource to CCC+

Standard & Poor's said it lowered the corporate credit rating on Builders FirstSource Inc. to CCC+ from B- and its second-lien notes to CCC from CCC+ with 5 recovery rating.

The outlook is negative.

"We are concerned that ongoing weakness in new residential construction will result in likely deterioration in the company's overall financial risk profile from an already weak level given our expectation for negative earnings and cash flow in the next few quarters," S&P analyst Andy Sookram said in a statement.

The CCC+ corporate credit rating reflects expectation that credit protection measures and liquidity will decline to levels appropriate for the new rating, the agency said.

Ratings reflect the company's exposure to the new residential market that is experiencing prolonged depressed construction activity, highly competitive cyclical markets, limited end-market focus and declining liquidity, the agency noted.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.