Moody's gives Koppers notes B1

Moody's Investors Service said it assigned a rating of B1 to Koppers Inc.'s proposed $300 million of senior unsecured guaranteed notes due 2019 and revised the outlook to positive from stable.

Koppers Holding Inc.'s corporate family rating is affirmed at Ba3, the agency said, adding that proceeds from the offering will be used for the redemption of existing debt at Koppers Holding.

According to Moody's, this rating action reflects both the relatively strong operating performance in the throws of an economic downturn and the prospect of a more flexible and improved capital structure.

"The positive outlook reflects its assumption that excess free cash flow is likely to be used for a prudent combination of debt reduction and shareholder dividends and that the proposed amendments to the senior credit facilities will, if approved as proposed, be a credit positive and enhance liquidity," said Moody's analyst Bill Reed.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.