S&P lifts outlook for Louisiana-Pacific to ‘Stable,’ reaffirms ‘BB’ rating
By APFriday, February 19, 2010
S&P ups outlook for Louisiana-Pacific to ‘Stable’
NEW YORK — Standard & Poor’s raised its outlook for Louisiana-Pacific Corp. to “Stable” from “Negative” on Friday, saying the building-products maker strengthened its balance sheet in 2009 despite the housing slump.
S&P also reaffirmed Louisiana-Pacific’s “BB” corporate credit rating.
The ratings agency said its economists expect housing starts to rise 35 percent this year and 50 percent next year, helping to gradually strengthen LP’s earnings.
S&P analyst Pamela Rice said LP “faces limited downside risk in the near term.” Louisiana-Pacific, based in Nashville, Tenn., had almost $400 million cash on Dec. 31 and about $60 million in debt coming due in the next three years.
LP shares rose 46 cents, or 6.3 percent, to $7.72.
