Moody's rates RPM notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to the $200 million notes of RPM International Inc. and affirmed the company's other ratings (senior unsecured at Baa3). The outlook remains negative.

The notes will be used to repay short-term debt and pre-fund RPM's 7% notes due June 15, 2005.

Moody's said the Baa3 rating of RPM is supported by relatively stable and improving financial metrics and a diverse product portfolio. RPM's operating margins and cash flows have strengthened since the company completed its restructuring in fiscal 2001. However, Moody's continues to believe, despite some recent positive evidence related to the settlement of malignancy claimants, that the potential future cash costs related to asbestos product liability settlements may be volatile and serve to offset the ongoing improvements in RPM's financial performance.

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