Moody's downgrades ratings on Vulcan Materials; outlook negative |
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Fri, 16 Nov 2007 19:35
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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 Huntkh/mbCOPYRIGHTCopyright 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.
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Vulcan Materials closes acquisition 