Moody's assigns Valspar notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to the Valspar Corp.'s proposed $250 million of 10-year senior unsecured notes and affirmed its existing Baa2 senior unsecured rating and Prime-2 commercial paper rating.

Valspar plans to use the proceeds of this offering to refinance its $150 million term loan maturing in November 2009 and repay existing short-term borrowings, the agency said.

Moody's added that it assigned a provisional Baa2 rating to Valspar's universal shelf.

The outlook is stable.

Valspar's long-term ratings reflect its solid market positions, sufficient size to compete in a consolidating industry, operational and geographic diversity, the less volatile nature of the paints and coating business versus other cyclical chemicals, steady cash flow, history of steadily repaying debt from acquisitions and credit metrics supportive of the rating, the agency said.

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