McKinney, Texas-based roofing and building products distributor SRS Distribution Inc.'s (SRS) cash flows are improving, stemming from higher-than-anticipated demand and increased repair and remodeling for residential construction, which we expect will lead to debt leverage below 6x over the next 12 months compared with our previous expectation of higher than 6x. As a result, we are revising the outlook to stable from negative and affirming our 'B' issuer credit rating. At the same time, we are affirming our 'B' issue-level ratings on SRS's secured debt, with a '4' recovery rating indicating our expectation for substantial (30%-50%; rounded estimate 40%), and our 'CCC+' issue-level ratings on the unsecured debt with a '6' recovery rating, indicating our expectation for average (0% to
