S&P: Airgas ratings unaffected by acquisition

Standard & Poor's said Tuesday that its ratings and outlook on Airgas Inc. (BB/positive/--) would remain unchanged following the announcement that the company plans to acquire BOC Group plc's (A/stable/A-1) U.S. cylinder gas business for up to $200 million.

S&P said the transaction would bolster Airgas' already solid business position. The positive outlook has been maintained to recognize the company's resilient internal funds generation and potential to reduce acquisition-related borrowings, and thus help in the recovery of cash flow protection and leverage measures.

Moreover, Airgas' management has demonstrated its ability to integrate acquisitions and derive cost synergies in a timely manner. On the other hand, likely additional acquisitions during the next couple of years, even at potentially moderate levels, could slow the expected strengthening in credit ratios. Greater discipline in the use of debt leverage to finance growth initiatives is key to an upgrade, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.