Moody's rates PPG notes A3

Moody's Investors Service said it assigned A3 ratings to the proposed five- and 10-year senior unsecured notes of PPG Industries and affirmed the company's other A3 ratings and its Prime-2 rating for commercial paper.

The outlook is stable.

Proceeds will be used to repay outstanding amounts under the €1 billion 364-day bridge facility that was used to acquire SigmaKalon Group and for other general corporate purposes.

According to the agency, the A3 rating considers the company's leading market positions, expanded geographical footprint and consistently strong earnings and cash flow generation despite cyclicality in its glass and chemical business segments.

Ratings also incorporate Moody's expectation that PPG will focus on reducing debt levels incurred for the acquisition of SigmaKalon to levels more in line with the A3 senior unsecured rating, the agency said.

Ratings could be downgraded if the company's debt-to-EBITDA ratio rises above 3 times or upgraded if leverage were to fall below 2 times, Moody's said.

© 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.