Standard & Poor’s has downgraded Builders FirstSource, following the Dallas pro dealer’s announcement that it has abandoned plans to refinance its existing debt and extend its revolving credit facility due in 2012.
The New York ratings agency lowered the company’s corporate credit rating from a “CCC+” to a “CCC” and gave it a negative outlook. S&P cited “ongoing weakness in new residential housing markets” and possible liquidity problems over the next several quarters.
Builders FirstSource had originally planned to offer $250 million of senior secured notes due 2019 and amend its revolving credit. But on April 25, when the company reported its first-quarter financial results, it announced that it had canceled those plans.