TEXT - Fitch rates Georgia Gulf proposed offering
Jan 17 - Standard & Poor's Ratings Services said today that it assigned its 'BB' senior unsecured debt rating and '3' recovery rating to Georgia Gulf Corp.'s proposed offering of $450 million senior unsecured notes due 2023. The issue rating is the same as the 'BB' corporate credit rating. The '3' recovery rating indicates our expectation of meaningful (50%-70%) recovery in the event of a payment default. At the same time, based on our updated recovery analysis, we revised our recovery rating on Georgia Gulf subsidiary Eagle Spinco Inc.'s proposed offering of $688 million of senior unsecured notes due 2021 to '3' from '4'. The 'BB' senior unsecured debt rating on these notes and all our other ratings on Georgia Gulf and Eagle Spinco remain unchanged. For the complete recovery analysis, see our recovery report on Georgia Gulf to be published shortly on RatingsDirect on the Global Credit Portal. "The company plans to use proceeds of the $450 million notes offering to redeem its $450 million 9% senior secured notes due 2017," said Standard & Poor's credit analyst Cynthia Werneth. The ratings reflect what we consider to be Georgia Gulf's "fair" business risk profile following its planned merger with PPG Industries' commodity chemicals business and its "significant" financial risk profile. We expect the key funds from operations to total debt ratio to be about 25%. For the entire corporate credit rating rationale, see our research update on Georgia Gulf, published Jan. 15, 2013, on RatingsDirect. RELATED CRITERIA AND RESEARCH -- Methodology And Assumptions: Liquidity Descriptors For Global Corporate Issuers, Sept. 28, 2011 -- Methodology: Business Risk/Financial Risk Matrix Expanded, Sept. 18, 2012 -- Key Credit Factors: Criteria For Rating Companies In The Global Commodity Chemicals Industry, Sept. 19, 2012 TEMPORARY CONTACT NUMBERS Cynthia Werneth, CFA, New York, (1) 347-233-0541; Paul J Kurias, New York, (1) 917-880-4230 RATINGS LIST Rating Unchanged Georgia Gulf Corp. Corporate Credit Rating BB/Stable/-- New Rating Georgia Gulf Corp. $450 mil. senior unsecured notes due 2023 Senior Unsecured BB Recovery Rating 3 Issue Rating Unchanged; Recovery Rating Revised Eagle Spinco Inc. $688 mil. senior unsecured notes due 2021 To From Senior Unsecured BB BB Recovery Rating 3 4
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