Fitch rates PPG notes A-

Fitch Ratings said it assigned an A- rating to PPG Industries, Inc.'s proposed offering of $400 million principal amount of senior notes due 2022.

The long-term issuer default rating is A-.

The outlook is stable.

Proceeds will be used to repay a portion of the company's outstanding 5.75% senior notes due 2013 or for general corporate purposes.

The ratings reflect a geographically well-balanced company with a heightened focus on its coatings and optical businesses, consistently strong earnings and excellent cash flow, the agency said.

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

On a pro forma basis excluding the results from the chemicals business, leverage of debt to EBITDA is expected to rise above 2.0x for fiscal 2012 from 1.7x at the end of 2011, but Fitch said it expects leverage to fall below 2.0x by year-end 2013 as the company pays down debt and increases EBITDA from restructuring initiatives begun over the past few quarters.

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