Bloomberg.com recently reported that Wolseley Plc, the world's biggest distributor of plumbing and heating equipment, was upgraded to “equal weight” from “underweight” at Morgan Stanley on speculation the company may close parts of its underperforming Stock division, its U.S. building-materials business.

Bloomberg.comrecently reported that Wolsele Plc, the world's biggest distributor of plumbing and heating equipment, was upgraded to “equal weight” from “underweight” at Morgan Stanley on speculation the company may close parts of its underperforming Stock division, its U.S. building-materials business.

The review is “likely to result in the permanent closure of large parts of the division, reducing losses and leading to better earnings for the group as a whole,” London-based analyst Jessica Flounders wrote in a note dated today. This, “combined with recent improved visibility on cash flow generation and a more lenient covenant calculation, has eased our concerns over Wolseley breaching its debt covenants.”