S&P ups Airgas, rates notes BB+

Standard & Poor's said it raised the corporate credit rating on Airgas Inc. to BBB- from BB+ and its subordinated debt rating to BB+ from BB-.

The agency also assigned a BB+ rating to the company's proposed $350 million senior subordinated notes due 2018.

The outlook is positive.

Completion of the debt offering will extend the debt maturity profile and provide funding to reduce borrowing under the revolving credit facility.

S&P said the upgrade reflects prospects for a continuation of strong earnings as well as for debt leverage policies that support average cash flow protection measures at or near current levels.

Ratings reflect the company's strong business risk profile, good operating margins and stable cash flow, the agency said.

These strengths are tempered by acquisition-related outlays, moderate cyclicality and debt-funded acquisitions, S&P noted.

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