Moody’s rates Valvoline notes Ba3

Moody's Investors Service said it assigned a Ba3 to $400 million of new guaranteed unsecured notes due 2025 issued by Valvoline Inc.

The notes are guaranteed by the same subsidiaries the guarantee the credit facility.

Proceeds will be used to fund the company pension obligations.

The agency also assigned a Ba2 corporate family rating to Valvoline and withdrew the Ba2 corporate family rating from Valvoline Finco Two LLC as Valvoline is the highest rated legal entity within the capital structure that has rated debt.

The outlook is stable.

"Valvoline is using the low interest rate environment to term out some of its pension obligations, which we view as a modest credit positive," John Rogers, Moody’s senior vice president and lead analyst on Valvoline, said in a news release.

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