Research Update: Beacon Roofing Supply Inc. Upgraded To 'BB-' From 'B+' On Lower Sustained Leverage; Outlook Stable

Beacon Roofing Supply Inc. (BECN), a residential and nonresidential roofing materials distributor, will likely continue to operate with leverage of 2x-3x on stable demand for roofing and building material products through 2022. S&P Global Ratings raised the issuer credit rating on BECN to 'BB-' from 'B+', with a stable outlook, based on the company's forecasted operating leverage, strength in residential construction, debt reduction, and stable gross margins. Additionally, we raised the issue-level rating on the term loan and senior secured notes to 'BB' from 'BB-', and at the same time raised the issue-level rating on the senior unsecured notes to 'B' from 'B-'. The stable outlook indicates our view that adjusted leverage will remain between 2x and 3x for the

...- Beacon Roofing Supply Inc. (BECN), a residential and nonresidential roofing materials distributor, will likely continue to operate with leverage of 2x-3x on stable demand for roofing and building material products through 2022. - S&P Global Ratings raised the issuer credit rating on BECN to '##-' from 'B+', with a stable outlook, based on the company's forecasted operating leverage, strength in residential construction, debt reduction, and stable gross margins. - Additionally, we raised the issue-level rating on the term loan and senior secured notes to '##' from '##-', and at the same time raised the issue-level rating on the senior unsecured notes to 'B' from 'B-'. - The stable outlook indicates our view that adjusted leverage will remain between 2x and 3x for the next 12 months on the back of steady demand for residential roofing products....

Research Update