MUMBAI (Thomson Financial) - Moody's Investors Service said it assigned its
'A3' rating to asphalt and concrete supplier Vulcan Materials Co.'s senior
unsecured notes issuance aggregating about $650 million.
The notes, issued under the company's seasoned issuer shelf registration,
are being issued in two tranches with maturities in 2013 and 2018. Moody's also
affirmed Vulcan's 'Prime-2' short term rating and the 'A3' senior unsecured
rating of Legacy Vulcan Corp. The rating outlook remains negative.
The proceeds from the notes issuance will be used to refinance a portion of
debt incurred to fund the acquisition of Florida Rock, the ratings agency added.
Vulcan's 'A3' senior unsecured ratings reflect the company's position as the
largest producer of construction aggregates in the U.S. and its strong presence
in the southern region of the country where construction activity is stronger
and seasonality has less of an effect on operations among other factors, Moody's
said.
The rating outlook remains negative as a result of the company's high
financial leverage, as well as challenging environment created by continued
downturn in the residential construction markets, and softening in
non-residential and public construction markets, Moody's added.
TFN.newsdesk@thomson.com
ash/npr
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