NCI Building Systems Inc. Rating Raised To #BB# From #BB-#, Outlook Is Other Rating Actions Taken

Stocks and Financial Services Press Releases Tuesday January 31, 2017 08:49
DALLAS--31 Jan--S&P Global Ratings
DALLAS (S&P Global Ratings) Jan. 30, 2017--S&P Global Ratings said today it raised its corporate credit rating on Houston-based NCI Building Systems Inc. to 'BB' from 'BB-'. The outlook is stable.

At the same time, we raised our issue-level rating on NCI's $238 million term loan due 2019 to 'BBB-' from 'BB+'. The recovery rating is unchanged at '1', which indicates our expectation of very high (90% to 100%) recovery for lenders in the event of a default.

We also raised our issue-level rating on NCI's $250 million unsecured notes due 2023 to 'BB' from 'BB-'. In addition, we revised the recovery rating on the notes to '3' from '4', which indicates our expectation of meaningful (50% to 70%, lower half of the range) recovery in the event of a default.

"The stable outlook reflects S&P Global Ratings' expectation that while growth rates in NCI's markets may decline marginally in 2017, they will remain positive and continue to outpace broader GDP growth rates," said S&P Global Ratings credit analyst Chiza Vitta. "We expect the company's leverage will remain below 3x over the next 12 months due to actions, including debt prepayments, taken over the past year, and sustained relatively elevated EBITDA margins. We also expect the company to continue to maintain strong liquidity based on its ABL revolving credit borrowing capacity, substantial cash on hand, and modest capital spending."

We could lower our rating on NCI if we expected leverage to approach 4x. This could happen if NCI decided to pursue a debt-financed acquisition or a more aggressive debt-financed stock repurchase program or if a moderate recession caused a reversal in nonresidential construction trends.

We could raise our corporate credit rating if CD&R further divested its ownership in NCI to below 40%, in accordance with our criteria regarding companies owned by financial sponsors, and maintained credit measures in the intermediate range, including adjusted leverage below 3x and FFO to debt above 30%, and if we began to see increased stability in operating results.

Latest Press Release

Alibaba Group Announces June Quarter 2019 Results angzhou, China, August 15, 2019 Alibaba Group Holding Limited (NYSE: BABA) today announced its financial results for the quarter ended June 30, 2019.

"Alibaba had a great quarter, expanding our user base to 674 million annual active consumers, demonstrating our superior user experience," said Daniel Zhang, Chief Executive Officer of Alibaba Group. "We will continue to expand our customer base,...

Photo Release: Krungsri inks MOU to form alliance with SE Thailand

Mr. Poonsit Wongthawatchai (second from right), Krungsri Executive Vice President, Environment, Social and Governance Division, shook hands with M.L. Dispanadda Diskul, (second from left), Chairman of Social Enterprise Thailand Association (SE Thailand),...

Experian Leads US$20M First Close of Series B1 Investment in Compar Aims To Build Healthier Financial Lives for Thailands Consumers via

- Experian's fifth major investment in Asia Pacific since 2017 highlights commitment to boosting financial health of consumers across the region - The Series B1 investment round, led by Experian, aims to connect more CompareAsiaGroup customers with...

Photo Release: Bangkok Bank highlighted its commitment to good governance and social and environmental responsibility at the Bangkok Sustainable Banking Forum 2019

Bangkok Bank Chairman Piti Sithi Amnuai (5th from right) and President Chartsiri Sophonpanich (3rd from left), together with the bank's directors Admiral Prachet Siridej (4th from right) Gasinee Witoonchart (3th from right) Arun Chirachavala (2 nd from...

Beijing#s Green Belt Road Forum Draws Global Lenders

Today, over 150 delegates from 40 global banks, investment firms and international organizations gathered in Beijing for the First Plenary Meeting of the Green Investment Principles for the Belt and Road (GIP), a major drive to promote environmentally...

Related Topics