Fitch rates RPM notes BBB-

Fitch Ratings said it assigned a BBB- rating to RPM International Inc.’s proposed offering of $250 million senior unsecured notes due 2045.

This issue will be ranked on a pari passu basis with all other senior unsecured debt, Fitch said.

The proceeds will be used to repay a portion of the outstanding borrowings under the company’s revolving credit facility, the agency said.

RPM International also has an issuer default rating of BBB-, senior unsecured debt rating of BBB- and unsecured revolving credit facility rating of BBB-.

The outlook is stable.

The ratings reflect the company’s well-balanced portfolio of products, geographic and end-market diversity, adequate liquidity position, stable credit metrics and consistent free cash flow generation, Fitch said.

Risks include the cyclicality of the company’s end-markets and growth through acquisition strategy, the agency said.

Fitch said it expects the company’s U.S. construction end markets will continue to improve this year, leading to modestly higher revenues and cash flow.

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