The ratings on Toledo, Ohio-based Owens Corning reflect the company's strong leading market positions, well-known brand names, good product and geographic diversity, increasing end-market diversity, and moderate financial policies. The ratings also reflect cyclical and competitive markets, current depressed U.S. housing demand, and cost pressures. Owens Corning manufactures building products and composite materials. Its primary businesses are insulation, roofing and asphalt, glass fiber reinforcement products (composites), and manufactured stone veneer. Although the global composites industry is highly competitive, fragmented, and suffers from excess capacity, we believe that the late 2007 acquisition of the reinforcements business of Compagnie de Saint-Gobain was positive for Owens Corning's business risk profile. The acquisition expanded the company's composites segment to 44% of sales in the
