The ratings for American Builders&Contractors Supply Co. Inc. (ABC) reflect its participation in highly competitive and fragmented markets, a narrow end-market focus, low distribution operating margins, and aggressive debt leverage. These negatives are partly 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. Privately-owned 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 midsize contractors supplying residential (nearly two-thirds total sales) and commercial markets. Business strengths include broad geographic coverage through 259 company-owned distribution centers; significant purchasing leverage--ABC is the largest or
