Moody“s Investors Service, the US credit rating agency, confirmed the debt ratings of Guardian Industries Corp. (senior at A1) but changed the rating outlook to negative. Guardian is a privately-held…
Moody“s Investors Service, the US credit rating agency, confirmed the debt ratings of Guardian Industries Corp. (senior at A1) but changed the rating outlook to negative. Guardian is a privately-held company that produces flat glass products for construction and automotive applications. Guardian also manufactures light density fibreglass insulation for the US and Canadian construction markets, and has grown in the building materials distribution business with the acquisition of Cameron Ashley Building Products, Inc. The change in outlook reflects concerns that cyclical pressures in the company“s core automotive and construction markets, combined with moderately higher debt levels, could lead to weaker business performance and debt protection measures in the near term. In a related action, Moody“s also extended Guardian“s Prime-1 short term rating to the issuance of commercial paper, as guaranteed by Guardian, by Cameron Ashley Building Products, Inc., which was acquired by Guardian last year. Guardian is expanding the size of its commercial paper program to US$ 500 million from US$ 300 million, and is adding Cameron as a guaranteed issuer under the program. The company“s alternate liquidity strategy includes several committed credit facilities that provide support for the commercial paper program.