U.S.-based building materials distributor American Builders&Contractors Supply Co. Inc. (ABC), continues to maintain strong credit metrics supported by better than expected repair and remodel activity, which accounts for the majority of the company's revenues As a result, we believe the company could potentially sustain S&P Global Ratings-adjusted leverage below 3x in 2023 and 2024. Therefore, we revised our outlook to positive from stable and affirmed our 'BB' issuer credit rating. The positive outlook reflects the potential for a higher rating if the company continues to demonstrate sustainability of elevated credit measures commensurate with a higher rating. As such, we expect ABC to generate $19 billion-$20 billion in annual revenues and S&P Global Ratings-adjusted earnings of $2.1 billion-$2.5 billion
