Moody's Investors Service is reviewing the financial strength ratings of wallboard maker USG Corp. for a possible downgrade as the company's business deteriorates amid the ongoing housing crash.
Any downgrade from the company's current level of "Baa3" would put its ratings in non-investment grade, or "junk," status. Lower ratings make it more expensive for companies to borrow money.
On Tuesday, USG reported a fourth-quarter loss, blaming slower new construction and fewer remodeling projects.
Moody's said the outlook for the sector remains bleak.
"The very poor outlook for new residential construction is expected to put considerable pressure on the company's financial performance over the intermediate term," the agency said.
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