MUMBAI (Thomson Financial) - Moody's Investors Service said it has
downgraded Vulcan Materials Co's senior unsecured ratings to 'A3' from 'A1' and
its short term ratings to 'Prime-2' from 'Prime-1' following the company's
acquisition of Florida Rock Industries Inc.
The downgrade reflects the level of debt being incurred to finance the
acquisition and the related contraction in coverage ratios, as well as the
integration risk, the agency said.
The rating outlook is negative on concerns that moderation in volumes and
prices could reduce operating cash flow and contribute to a slower debt
repayment profile and improvement in metrics than anticipated, Moody's added.
TFN.newsdesk@thomson.com
ndi/faj
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