S&P rates PPG notes BBB+

Standard & Poor's said it assigned a BBB+ senior unsecured debt rating to PPG Industries Inc.'s proposed $1 billion senior notes with varying maturities of 2016, 2020, and 2040. The notes are a drawdown from its existing shelf registration.

The company's BBB+ long-term corporate credit rating and A-2 short-term rating were affirmed.

The proceeds will be used to repay a $400 million term loan, contribute to employee pension plans, fund certain asbestos claims and other general corporate purposes.

The ratings incorporate the company's strong business profile, supported by competitive positions in large coatings markets and meaningful geographic diversity, S&P said.

The ratings also reflect prospects for improving earnings and operating margins over the business cycle and for meaningful discretionary cash flows, the agency said.

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