Research Update: Georgia Gulf Corp. Ratings Placed On CreditWatch Positive On Merger With PPG Industries' Commodity Chemicals Business Jul 12
- Language: English
- Published: July 2012
- Region: Georgia
The ratings on U.S.-based commodity chemicals company Georgia Gulf Corp. reflect the improvement in the company's operating performance and debt measures, as well as Standard & Poor's Ratings Services' expectation that Georgia Gulf will be able to at least maintain its improved credit metrics in the future. The key ratio of funds from operations (FFO) to total adjusted debt was about 26% as of Sept. 30, 2011, exceeding our expectations for the rating on Georgia Gulf. The ratio provides the company with some cushion during periods of volatile earnings and also to execute potentially debt-funded capital spending or growth programs, while maintaining credit quality at current levels. This ratio is up from about 19% for the corresponding period in 2010....
Companies mentioned in this report are:
- Axiall Corp.
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- Axiall Corp.