The rating on Toledo, Ohio-based Owens Corning (OC) reflects our view of the company's satisfactory business risk profile and intermediate financial risk profile. OC's business risk profile is marked by its leading market positions in insulation and roofing products, well-known brand names, improving cost structure, and good product, end-market, and geographic diversity. These strengths are somewhat tempered by the following weaknesses: participation in highly cyclical and competitive markets, and ongoing depressed U.S. housing demand, a key driver for the company's insulation business. The company's intermediate financial risk profile reflects good operating cash flow generation throughout a cycle, strong liquidity and prospects for meaningfully stronger earnings when U.S. housing markets begin to recover, combined with a sizable share repurchase program and
