S&P: PPG on watch

Standard & Poor's said its ratings on PPG Industries Inc., including its A corporate credit rating, remain on CreditWatch with negative implications, where they were placed July 19.

The CreditWatch reflects the agreement under which PPG will acquire unrated SigmaKalon Group, the agency said.

"Upon completion of the transaction, which is expected within the next two months, we will lower the corporate credit and senior unsecured debt ratings to A- from A and the commercial paper ratings to A-2, from A-1. We would also assign a negative outlook," said S&P credit analyst Wesley E. Chinn.

"The downgrades would reflect the deterioration in cash flow protection measures, because of the substantial increase in debt to help fund the acquisition. The pending divestitures of the automotive OEM and automotive replacement glass and services businesses and the fine chemical operation would be a moderate source of cash, however."

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