Moody's announced Thursday that it was lowering Martin Marietta's credit rating to Ba1, one level below investment grade.
In explaining the downgrade, Moody's cited Martin Marietta's "willingness to take on greater financial and strategic risk than previously indicated by its unsolicited bid for Vulcan Materials Company. The rating incorporates the risk that the company may re-initiate its bid for Vulcan once allowed to do so, or may seek other, potentially debt financed, acquisitions to bolster languishing organic growth."
Moody's also said that Martin Marietta's rating would be placed on review if it reinitiates its acquisition attempt for Vulcan.
Moody's on Thursday also downgraded Birmingham-based Vulcan.