S&P: Georgia Gulf notes BB

Standard & Poor's said it assigned a BB senior unsecured debt rating and 3 recovery rating to Georgia Gulf Corp.'s proposed offering of $450 million senior unsecured notes due 2023.

The rating is the same as the BB corporate credit rating. The 3 recovery rating indicates 50% to 70% expected default recovery.

The agency also said it revised the recovery rating on Georgia Gulf subsidiary Eagle Spinco Inc.'s proposed offering of $688 million of senior unsecured notes due 2021 to 3 from 4.

The BB senior unsecured debt rating on these notes and all of the other ratings on Georgia Gulf and Eagle Spinco remain unchanged.

The company plans to use proceeds of the $450 million notes offering to redeem its $450 million 9% senior secured notes due 2017, S&P said.

The ratings reflect Georgia Gulf's fair business risk profile following its planned merger with PPG Industries' commodity chemicals business and its significant financial risk profile, the agency said.

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