S&P rates PPG notes A-

Standard & Poor's said it assigned an A- senior unsecured debt rating to PPG Industries Inc.'s proposed notes due 2013 and 2018. The A- long-term and A-2 short-term corporate credit ratings were affirmed.

The outlook remains negative.

Proceeds will be used to repay a €1 billion bridge loan incurred to help fund the recent acquisition of SigmaKalon Group and for other general corporate purposes.

Ratings reflect the company's strong, competitive positions in large coatings markets and the geographic diversity of the consolidated sales base, the agency said.

Ratings also reflect prospects for greater consistency of earnings and operating margins over a business cycle and for meaningful discretionary cash flows, which are expected to be used to reduce the debt load during the next few years, S&P said.

Cash flow protection measures are substandard for the current ratings because of the substantial increase in debt to help fund the acquisition of SigmaKalon, the agency noted.

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