The ratings for American Builders&Contractors Supply Co. Inc. (ABC) reflect its participation in highly competitive and fragmented markets, a narrow product line, low distribution operating margins, and aggressive debt leverage. These negatives are partially mitigated by the company's solid position in the wholesale distribution of roofing products, its relatively stable product demand, and credit protection measures acceptable for the rating category. Beloit, Wis.-based ABC is the largest wholesale distributor of roofing products and one of the largest distributors of vinyl siding in the U.S., primarily serving small- and medium-size contractors supplying residential (55%-60% of total 2002 sales) and commercial markets (19%). Business strengths include broad geographic coverage through 261 company-owned distribution centers that are strongly customer service-focused; significant
