Our 'B' long-term corporate credit rating on SRS Distribution Inc. is derived from our anchor of 'b' based on our "weak" business risk profile and "highly leveraged" financial risk profile assessments for the company. Fifth-largest wholesale roofing distributor in the U.S. Majority of the company's end market mix consists of residential roofing, driven primarily by repair and reroofing activity Product diversity limited to roofing materials and accessories, with a majority of sales derived from residential markets Highly leveraged financial risk profile based on our expectation that credit measures will remain in the 5x-5.5x range We apply our criteria related to companies owned by financial sponsors due to SRS' ownership by Berkshire Partners LLC We view SRS' liquidity as "adequate" based
