Moody’s rates Corning notes Baa1

Moody's Investors Service said it assigned a Baa1 rating to Corning Inc.’s new $500 million of unsecured notes due 2057.

Proceeds will be used to refinance the $250 million notes due November 2017 and for general corporate purposes, which may include equity repurchases and payment of dividends under its 2015 capital allocation plan.

The issuance does not impact the other ratings, including the Baa1 senior unsecured or P-2 short-term ratings.

The outlook is stable.

"The additional $250 million of debt, which brings total adjusted debt to approximately $6 billion, is within Moody's expectations as part of Corning's capital allocation plan, although at an accelerated pace," David Berge, Moody’s senior vice president and lead analyst for the company, said in a news release.

"Debt to EBITDA increases to approximately 2.0 times, which was not expected until 2018, but is nonetheless close to the company's long-term leverage target."

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