Standard & Poor's Backs Owens Corning Ratings

WASHINGTON (AP) — Standard & Poor's on Thursday affirmed Owens Corning's investment grade corporate credit rating and revised the building materials company's outlook.

The ratings agency backed the Toledo, Ohio-based company's "BBB-" rating and revised the company's outlook to "stable" from "negative."

"The rating actions reflect our belief that Owens Corning's product, end-market and geographic diversity should enable it to continue to generate good cash flow despite facing another year of cyclically weak insulation earnings in 2010," said Pamela Rice, a Standard & Poor's credit analyst.

Standard & Poor's said the outlook reflects Owens Corning's diverse business portfolio. The agency anticipates the company will produce positive cash flow despite a very poor housing market.

It said it expects Owens Corning should end 2009 with about $500 million of cash and nearly $1 billion available under a revolving credit facility. Additionally, Standard & Poor's says there is substantial upside for the company's financial performance when the economy recovers and housing starts exceed one million, which the agency forecasts will occur in 2011.