Granite US Holdings Corp. substantially outperformed S&P Global Ratings' expectations in the second quarter of 2020, with relatively flat year-over-year revenues in the period. Additionally, the company generated positive free operating cash flow and repaid a substantial amount of the draw on its revolving credit facility, such that we believe a covenant breach is less likely over the next 12 months. As a result, we are placing the ratings on CreditWatch with positive implications. The positive CreditWatch reflects there is at least a one-in-two chance that we could raise the ratings over the next quarter if the company continues to generate positive cash flow, maintain sufficient revolving capacity, and debt leverage remains at levels that we would consider sustainable. In
