Builders FirstSource Inc.
Standard & Poors, May 2011
Abstract
Increased cash on hand following its equity rights offering in 2010; Minimal debt maturities in the upcoming 12 months; and No significant customer concentration risk. Highly constrained borrowing availability under its asset-based revolving credit facility; Potential for significant liquidity deficits beyond 2011; Profitability susceptible to volatile lumber and raw materials costs; Narrow end-market focus and geographic scope; and Significant exposure to highly cyclical residential new housing markets. The ratings on Dallas-based Builders FirstSource Inc. reflect what Standard & Poor's considers to be the company's highly leveraged financial risk profile and less than adequate liquidity profile. Specifically, we believe the company's liquidity could become further constrained over the next several quarters, given the high likelihood of continued negative free cash flow...
Companies mentioned in this report are: Builders FirstSource Inc.
Action: Review
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Full Analysis
Builders FirstSource Inc.
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