06 February 2008 15:38 [Source: ICIS news]
TORONTO (ICIS news)--Standard & Poor’s (S&P) has raised its outlook for RPM International, due to the company’s balanced product portfolio and diversification and may even upgrade its ratings for the US-based coatings manufacturer, the brokerage said on Wednesday.
S&P raised its outlook for RPM to "positive", from "stable" and confirmed RPM’s ratings at "BBB-".
RPM's businesses were well balanced between industrial and consumer end markets, with strong brands leading positions in relatively stable niches within the protective coatings industry, S&P said.
“Continuing growth in international markets is another positive, with 20% to 25% of total revenues generated outside of North America,” it added.
In addition, RPM had a proven ability to integrate a continuous flow of small- to medium-size company and product line acquisitions, S&P said.
Factors tempering RPM’s strength included its ongoing use of debt to help fund acquisitions and asbestos-related liabilities, it said.
"We could raise the ratings if RPM's debt-leverage policies, especially as they relate to acquisitions, support a strengthened financial profile and asbestos-related liability trends remain reasonable," added S&P analyst Wesley Chinn.
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