Fitch affirms PPG

Fitch Ratings said it affirmed PPG Industries, Inc.'s long-term issuer default rating at A-, senior unsecured debt rating at A-, short-term issuer default rating at F2 and commercial paper rating at F2.

The outlook was revised to stable from negative.

PPG issued $1.55 billion of senior notes, comprising $600 million five-year notes, $700 million 10-year notes and $250 million 30-year notes. Proceeds will be used to repay €1 billion 364-day bridge loan facility that matures in December 2008. The bridge loan was used to help fund the acquisition of SigmaKalon in January.

Fitch said the affirmations reflect a geographically well-balanced company with a heightened focus on its coatings and optical businesses, consistent strong earnings and excellent cash flow.

Risk factors include a higher leverage profile, the cyclicality of certain end markets, often volatile raw materials and energy costs, and the company's exposure to asbestos litigation, the agency said.

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