Fitch rates PPG notes A-

Fitch Ratings said it expects to assign an A- rating to PPG Industries, Inc.'s proposed offering of $1 billion of senior unsecured notes, comprising three tranches with maturities in 2016, 2020 and 2040.

The notes will rank equally with all of the company's other senior unsecured debt.

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 company has a long-term issuer default rating of A-, senior unsecured debt rating of A-, short-term issuer default rating of F2 and commercial paper rating of F2.

The outlook is stable.

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

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.