...Modest Growth Supports Stable Sector Outlook: Fitch Ratings has a stable outlook for the U.S. building products and materials sectors despite headwinds challenging the industry at the moment. Raw-material cost inflation and increased transportation costs have pressured margins so far in 2018. However, Fitch expects a continued modest increase in overall construction activity, which should allow issuers to recover some of the margin compression. Rating Trajectory -- Stable, but Near-Term Pressures: The credit ratios of most issuers have weakened as lower margins have led to flatter EBITDA and cash flow. Moreover, more aggressive acquisition and share repurchase activities have led to either higher debt levels or temporary delays in debt reduction. Some issuers are currently approaching (or are slightly above) the negative rating sensitivities as it relates to leverage levels. Fitch expects margins and credit ratios will recover slightly in 2019, providing additional cushion for the ratings....
