The ratings on Toledo, Ohio-based Owens Corning (OC) reflect the company's satisfactory business risk profile, supported by leading market positions, well-known brand names, good product and end-market diversity, increasing geographic footprint, and improving cost structure. The ratings also reflect the company's participation in cyclical and competitive markets, ongoing depressed U.S. housing demand, and volatile roofing performance. The company's intermediate financial risk profile reflects good operating cash flow generation, and prospects for stronger credit measures following recent meaningful debt reduction. However, Standard&Poor's Ratings Services believes the implementation of a sizable share repurchase program while the timing and strength of any housing rebound remain uncertain, represents a somewhat more aggressive financial policy toward shareholder distribution. OC manufactures composite materials and
