ABC Money
Home

Moody's downgrades ratings on Vulcan Materials; outlook negative


Published :
Fri, 16 Nov 2007 19:35
By : Agencies
Print this Story


AddThis Social Bookmark Button

SAN FRANCISCO (Thomson Financial) - Moody's Investors Service on Friday downgraded certain ratings on Vulcan Materials Co., including lowering its senior unsecured ratings to A3 from A1, and short-term ratings to Prime-2 from Prime-1.

The outlook on the Birmingham, Ala.-based producer of construction aggregates is negative, Moody's said.

The agency said the actions were prompted by Vulcan's acquisition of Jacksonville, Fla.-based Florida Rock Industries Inc. in a cash-and-stock deal valued at $4.2 billion.

The downgrade reflects the level of debt being incurred to finance the acquisition of Florida Rock and the related contraction in coverage ratios, as well as the integration risk associated with combining Florida Rock into the larger organization, the agency noted.

The outlook considers Moody's concerns that moderation in volumes and prices due to softening in economic conditions could reduce operating cash flow and contribute to a slower-than-anticipated debt repayment profile and improvement in metrics, the agency said.

Vulcan shares were down 75 cents at $82.56.

Katherine Hunt

kh/mb

COPYRIGHT

Copyright Thomson Financial News Limited 2007. All rights reserved.

The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.




Share on


 You Might Like
Vulcan Materials closes acquisition
Citibank Japan ratings cut on parents' rating downgrade - Moody's
+
Macy's outlook cut to negative from stable, ratings affrimed - Moody's

Comment on this Article
Comment:
Title:
Name:
Please Enter
 
Here
  

 Search News

 Look For
Business
Credit cards
Finance
Loans
Money
Mortgages

 
 Stock Quotes *
SYMBOL
LAST
CHANGE
DOW JONES
10741.98
-37.19 ( -0.34 %)
NASDAQ
2374.41
-16.87 ( -0.71 %)
FTSE 100
5650.13
+7.51 ( 0.13 %)

SYMBOL ( 2010-03-19 )
LAST
CHANGE
CARNIVAL ( 12:35pm )
2650.00
+52.00 ( 2.00 %)
RECKITT BENCKISER ( 12:35pm )
3564.00
+48.00 ( 1.36 %)
ASTRAZENECA ( 12:35pm )
2942.00
+31.50 ( 1.08 %)
SMITHS GROUP ( 12:35pm )
1100.00
+24.00 ( 2.23 %)
WHITBREAD ( 12:35pm )
1540.00
+21.00 ( 1.37 %)

SYMBOL ( 2010-03-19 )
LAST
CHANGE
COCA COLA CO ( 4:00pm )
54.75
+0.80 ( 1.48 %)
UNITED TECHNOLOGIES CORP ( 4:01pm )
73.24
+0.74 ( 1.02 %)
HONEYWELL INTL INC ( 4:01pm )
43.82
+0.39 ( 0.89 %)
AT & T INC ( 4:02pm )
26.24
+0.18 ( 0.69 %)
AMERICAN INTERNATIONAL GROUP INC ( 4:03pm )
34.80
+0.16 ( 0.46 %)

SYMBOL ( 2010-03-19 )
LAST
CHANGE
PATRIOT TRANSPORTATION HOLDING INC ( 4:00pm )
90.01
+7.03 ( 8.48 %)
ARDEN GROUP INC ( 4:00pm )
110.00
+6.50 ( 6.23 %)
BAIDUCOM INC ( 4:00pm )
569.65
+4.99 ( 0.87 %)
MICROSTRATEGY INC ( 4:00pm )
89.27
+4.25 ( 4.73 %)
ATRION CP ( 4:00pm )
149.49
+3.78 ( 2.57 %)

Gainers & Losers
Dow Jones
Euro Stoxx 50
FTSE 100
FTSE 250
FTSE AIM
FTSE ALL
Nasdaq

 Portfolio Manager

You must log in to access this area of the site. If you are not a registered user click here to sign up for instant access!


 Finance Explained

Money making ideas

Save money

Money management
Savings accounts
Investing money
Share dealing
Stock broker
Forex currency trading
Pension plans
Functions of Money

(c) 2007 ABCmoney.co.uk, All Rights Reserved
*ABCMoney.co.uk does not guarantee the accuracy of any share prices or stock quotations displayed. These are not real time quotes; all are delayed by at least twenty minutes and are for information purposes only.