Moody“s Investors Service, the major US credit-rating agency, placed the debt ratings of PPG Industries, the US glass, coatings and chemicals producer, under review for possible downgrade. The review…
Moody“s Investors Service, the major US credit-rating agency, placed the debt ratings of PPG Industries, the US glass, coatings and chemicals producer, under review for possible downgrade. The review is prompted by the potential for further earnings pressure due to a slowing North American economy and the stress that could be placed upon debt protection measures, given the company“s high level of indebtedness, Moody“s said. PPG recently reported lower fourth quarter earnings, citing declining sales volume, higher energy costs, lower pricing and currency translation effects. PPG is also implementing additional cost reduction programs that are expected to result in pretax charges of US$ 50-100 million in the first quarter of 2001.