US PPG's debt under review for downgrade

19 July 2007 23:03  [Source: ICIS news]

HOUSTON (ICIS news)--Standard & Poor's Ratings Service placed on Thursday PPG Industries' debt under review for a possible downgrade, following the company's announcement of its offer to buy SigmaKalon.

PPG is in exclusive negotiations to buy SigmaKalon for €2.2bn ($3bn) from its owner, Bain Capital.

The acquisition will substantially increase PPG's percentage of sales from performance and applied coatings, the ratings service said.

However, the debt needed to fund the acquisition will deteriorate PPG's financial profile, Standard & Poor's said.

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Author: Al Greenwood
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