Standard and Poor’s credit rating service upgraded building products supplier Louisiana-Pacific Corp. to “stable” from “negative,” on Thursday, citing growth in the U.S. homebuilding market.
The ratings agency said strengthening demand for home construction could lift the company’s performance going forward. S&P maintained a corporate credit rating of “BB,” for Louisiana-Pacific, indicating the manufacturer’s financial risks are “significant” and its debt is noninvestment grade or “junk.”
S&P analysts warned that they could lower the company’s rating if the housing recovery stalls.
Louisiana-Pacific is a leading provider of building materials in the U.S., Canada and South America. The company’s performance is subject to seasonal changes in demand and pricing fluctuations for fiber, energy and resin.
Louisiana-Pacific shares were unchanged at $13.28 in afternoon trading.
