Research Update: Granite US Holdings Corp. Upgraded To 'B' On Continued Improvement In Operating Performance; Outlook Stable

Granite US Holdings Corp. (d/b/a Howden) continues to report improved sales and profitability as the macroeconomic environment stabilizes, resulting in healthy EBITDA growth. As a result, S&P Global Ratings believes the company will continue to generate strong positive free operating cash flow (FOCF) and for adjusted leverage to improve to the low-5x area in 2021. Therefore, we raised our issuer credit rating on the company to 'B' from 'B-'. The outlook is stable. At the same time, we raised the ratings on the company's senior secured credit facilities to 'B' from 'B-' and on its senior unsecured notes to 'CCC+' from 'CCC'. The '3' recovery rating on the senior secured facilities (50%-70%; rounded estimate: 60%) and '6' recovery rating on

...- Granite US Holdings Corp. (d/b/a Howden) continues to report improved sales and profitability as the macroeconomic environment stabilizes, resulting in healthy EBITDA growth. - As a result, S&P Global Ratings believes the company will continue to generate strong positive free operating cash flow (FOCF) and for adjusted leverage to improve to the low-5x area in 2021. - Therefore, we raised our issuer credit rating on the company to 'B' from 'B-'. The outlook is stable. - At the same time, we raised the ratings on the company's senior secured credit facilities to 'B' from 'B-' and on its senior unsecured notes to '###+' from '###'. - The '3' recovery rating on the senior secured facilities (50%-70%; rounded estimate: 60%) and '6' recovery rating on the unsecured notes (0%-10%; rounded estimate: 0%) are unchanged. - The stable outlook reflects our view that Howden's operating performance will continue to improve given favorable end market conditions, allowing the company to maintain an S&P...

Research Update