S&P: Sherwin-Williams on watch

Standard & Poor's said it placed its ratings on Sherwin-Williams Co., including the A corporate credit rating, on CreditWatch with negative implications.

This action follows the company's agreement to acquire Consorcio Comex SA de CV for about $2.34 billion, including assumed debt, in an all-cash transaction. The acquisition is expected to be completed in the first quarter of 2013.

"The CreditWatch placement reflects the increased likelihood that we will lower our ratings on Sherwin-Williams and its debt issues following its acquisition of Comex because of the resulting increase in debt leverage," said S&P credit analyst Liley Mehta in a news release.

"The pending acquisition will significantly increase the company's debt total adjusted debt of about $2 billion at Sept. 30, 2012."

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