The ratings on Toledo, Ohio-based Owens Corning (OC) reflect the company's satisfactory business risk profile, because of its leading market positions, well-known brand names, good product, end-market, and geographic diversity, and improving cost structure. The ratings also reflect the company's participation in cyclical and competitive markets, and ongoing depressed U.S. housing demand. The company's intermediate financial risk profile reflects good operating cash flow generation even during a downturn, prospects for meaningfully stronger earnings when U.S. housing markets begin to recover, and the implementation of a sizable share repurchase program while the timing and strength of any housing rebound remains uncertain. OC manufactures composite materials and building products. Its primary businesses are glass fiber reinforcement products (composites), insulation, and roofing and
