Reuters logo
TEXT - Fitch rates Georgia Gulf proposed offering
January 17, 2013 / 6:20 PM / in 5 years

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.

     -- 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

Cynthia Werneth, CFA, New York, (1) 347-233-0541; Paul J Kurias, New York, (1) 


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

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below