S&P cuts PPG Industries

Standard & Poor's said it lowered the corporate credit and senior unsecured debt ratings on PPG Industries Inc. to BBB+ from A- and affirmed its A-2 short-term rating.

The outlook is negative.

"The rating action reflects our expectation that because of lower sales volumes and earnings, the company's financial profile is unlikely to strengthen in the next few years to the extent necessary to support the former ratings," S&P analyst Liley Mehta said in a statement.

Ratings incorporate its strong, competitive positions in large coatings markets and the geographic diversity of the consolidated sales base, the agency said.

Ratings also reflect prospects for improving earnings and operating margins over the business cycle and for meaningful discretionary cash flows, which the agency said it expects PPG to use to reduce debt during the next few years.

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