...Martin Marietta Materials, Inc.'s `BBB' rating reflects the company's leading market position, geographically diverse quarry network, high barriers to entry, consistent FCF generation, solid liquidity, and strong credit metrics. The rating also reflects the high level of fixed costs in the company's cost structure, and the seasonal and cyclical nature of the U.S. construction sector, including the dependence of infrastructure spending on federal, state and local funding. Management's willingness to opportunistically pursue an aggressive growth strategy and consequently higher leverage levels, as well as the company's active, and at times sizeable, share repurchase program, are also factored into the `BBB' rating. The Outlook revision to Stable reflects Martin Marietta's strong performance during the coronavirus pandemic. Fitch Ratings previously revised the Outlook to Negative in May 2020 based on forecast revenue and EBITDA declines that led to forecast total debt to operating EBITDA exceeding...
