Moody's downgrades PPG

Moody's Investors Service said it downgraded the issuer and senior unsecured ratings of PPG Industries, Inc. to Baa1 from A3 and affirmed its rating for commercial paper at Prime-2.

The outlook is stable.

Moody's said that the downgrade was a result of weaker-than-expected credit metrics and conveyed concern that a slow economic recovery in the United States and Europe will likely cause credit metrics to remain below previously anticipated levels over the next two years.

Moody's also noted that PPG's shortfalls in EBITDA and cash flow are driving the downgrade.

The stable outlook reflects Moody's belief that PPG financial metrics can recover fairly quickly.

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