NEW YORK (Standard&Poor's CreditWire) Feb. 22, 2000--Standard&Poor's today revised the outlook on American Builders&Contractors Supply Co. Inc. (ABC) to negative from stable, reflecting subpar, albeit improving, credit quality measures. Outstanding ratings on the company are affirmed (see list below). Ratings incorporate the company's leading position in the wholesale distribution of roofing products, relatively stable product demand, and meaningful liquidity. These positives are offset by highly competitive and fragmented markets, a relatively narrow product line, relatively low operating margins (about 5% on average), and aggressive debt leverage. The company is the largest wholesale distributor of roofing products and one of the largest distributors of vinyl siding in the U.S., primarily serving small and medium-size contractors.
