Moody's gives Worthington notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Worthington Industries' $150 million of senior unsecured notes maturing 2020. The notes will be issued under the company's well-known seasoned issuer shelf registration, which is rated a provisional Baa2 for senior unsecured debt securities.

Moody's also said it affirmed its Baa2 issuer rating.

The outlook remains negative.

Proceeds from the note issuance will be used to repay the company's accounts receivable securitization facility and a portion of its revolving credit facility.

The ratings reflect the diversity of the company's business segments and end markets, low leverage and conservative financial policies, Moody's said, and low-risk growth strategy incorporating joint ventures.

The ratings also reflect the variability of the company's operating margins, which are closely tied to the volatility of raw material input costs, particularly steel, as well as the cyclicality of its major end markets, including commercial and residential construction and automotive, the agency said.

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