We estimate that U.S.-based American Builders&Contractors Supply Co.'s sales will increase in 2013 due to a combination of market share gains and increased storm-related demand for products in the Northeast. We also estimate strong growth in new housing starts. We are assigning our 'BB-' corporate credit rating the company and are assigning our 'BB+' issue-level rating and '1' recovery rating to the company's $1.25 billion senior secured term loan B, and a 'B' issue-level rating and '6' recovery rating to its $500 million senior unsecured notes. Our stable outlook reflects our view that a stronger new home construction market will boost sales of the company's roofing products, siding, windows, and other materials from an already solid base and
