Fitch: PPG outlook stable

Fitch Ratings said it affirmed PPG Industries, Inc.'s long-term issuer default rating and senior unsecured debt at A- and its short-term issuer default rating and commercial paper at F2 and revised the outlook to stable from negative.

The agency said the outlook revision reflects the company's stronger liquidity position and Fitch's forecast of moderate growth in the global economy in 2010, although the pace of expansion is expected to be modest by the standards of past recoveries.

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

Risk factors include a higher leverage profile, the cyclicality of some of PPG's end-markets, often volatile raw materials and energy costs and the company's exposure to asbestos litigation, the agency added. The debt-to-EBITDA ratio, as calculated by Fitch, is 2.6 times.

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