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Posted on Mon, Dec 17, 2012 : 4:02 p.m.

Ann Arbor Township Masco office key to company's downgraded credit rating

By Ben Freed

The poor performance of Masco Corporation’s (MAS) Ann Arbor Township-based cabinet division is a major reason for the company’s downgrade Dec. 12 by Moody’s Investors Service.

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While Moody’s downgraded Masco’s ratings to Ba3, three notches into junk territory, they also revised their outlook on the company from negative to stable.

Moody’s said in a statement they anticipate that the cabinets division, which moved to Ann Arbor Township in 2010, will “continue to be a drag on earnings for the foreseeable future.”

Masco is headquartered in Taylor and is one of North America’s largest home improvement and building products manufacturers. It is the parent company for a range of commonly known products such as KraftMaid cabinets, Behr paint, and Delta faucets.

The Ann Arbor Township headquarters of the cabinets division was intended to employ about 450 people.

Despite the downgrade, investor confidence has remained strong. As of 4 p.m. Monday the company was trading at $16.42 per share, up 3.5 percent during the past five days.

Ben Freed covers business for AnnArbor.com. You can sign up here to receive Business Review updates every week. Reach out to Ben at 734-623-2528 or email him at benfreed@annarbor.com. Follow him on twitter @BFreedinA2

Comments

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Tue, Dec 18, 2012 : 2:38 p.m.

The Building Trades picketed this job for weeks because all labor and material was brought in from out of town. Thus no jobs, and the local economy suffered.

PineyWoodsGuy

Tue, Dec 18, 2012 : 9:34 a.m.

This is a company controlled by Manoogian family insiders, surrounded by a highly paid (think $100K+) board of directors. Former Detroit Mayor Dennis Archer is on the board. Full of 20th Century types. Don't expect any forward thinking out of them!