Moody's rates PPG notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to PPG Industries, Inc.'s $1 billion of senior unsecured notes due 2016, 2020, and 2040 issued from the existing shelf. The agency also assigned a Baa1 rating to its senior universal shelf.

The vast majority of proceeds from this debt issuance will be used to repay its $400 million term loan, pre-fund asbestos related liabilities and contribute to employee pension plans over the next year, Moody's said.

The outlook is stable.

With this financing PPG has funded all of its near-term obligations at attractive rates, Moody's said.

But the company's funding of its asbestos-related liabilities remains uncertain as the final court approval continues to be delayed, the agency said.

The ratings are supported by the company's leading market positions in core business segments and its global footprint and expanding position in architectural coatings, Moody's said.

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