Moody“s Investors Service, the US credit rating agency, downgraded the long -term senior debt ratings of PPG Industries Inc., the US glass manufacturer, to A2 from A1. Moody“s also confirmed the sh…
Moody“s Investors Service, the US credit rating agency, downgraded the long -term senior debt ratings of PPG Industries Inc., the US glass manufacturer, to A2 from A1. Moody“s also confirmed the short term debt ratings of PPG and its supported subsidiaries at Prime-1. The rating outlook is stable. The actions conclude a review initiated on 24 January 2001. The downgrade primarily reflects concerns that PPG“s debt levels, which increased as a result of acquisition activity, will not decline at the rate previously anticipated. Combined with the company“s increased focus on shareholder returns during 2000 and prospects for a slowing economy, restoration of debt protection measures to historical levels is considered less likely in the near term. Approximately US$ 3 billion of debt securities are affected. A PPG spokesman said the downgrade wasn“t a surprise. “The release speaks for itself,” he said. “And the rating outlook was favourable” he said, referring to Moody“s outlook “that PPG will generate free cash flow during 2001 despite a slowing economy.” PPG Industries had revenue of approximately US$ 8.4 billion in 2000.