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,
-- 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)
Georgia Gulf Corp.
Corporate Credit Rating BB/Stable/--
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
Senior Unsecured BB BB
Recovery Rating 3 4