S&P ups RPM outlook to positive

Standard & Poor's said it revised its outlook on RPM International Inc. to positive from stable and affirmed the existing BBB- ratings.

The agency said that the outlook revision recognizes the increased potential that the company will maintain key cash flow protection measures at levels appropriate for improved ratings.

According to S&P, it could raise the ratings if RPM's debt leverage policies, especially as they relate to acquisitions, support a strengthened financial profile and asbestos-related liability trends remain reasonable.

The ratings on RPM incorporate the company's diverse specialty coatings and materials businesses, its high level of maintenance, replacement and renovation sales providing a meaningful degree of stability to earnings, a proven ability to integrate a continuous flow of small-to medium-size company and product line acquisitions and cash flow protection measures appropriate for the ratings, the agency added.

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