Moody's Investors Service has lowered its rating on the debt of Louisiana-Pacific, saying the construction materials supplier will get no respite from a depressed housing market until well into 2010.
In a note explaining its move, Moody's said Nashville-based LP's credit metrics and cash holdings will continue to be an issue because of low prices and slack demand for oriented strand board, its main product.
Analyst Ed Sustar acknowledged the cost-cutting measures LP is making, but said that "the ongoing cash needs to fund its operations continue to deplete the company's liquidity."
At about 12:50 p.m., shares of LP (Ticker: LPX) were off more than 5 percent at $1.70. Year to date, the shares are down 87 percent.
Moody's Investors Service |
Louisiana-Pacific Corp. |
Debt ratings |
Market-movers
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