Moody's could lift Georgia Gulf

Moody's Investors Service said it placed the ratings of Georgia Gulf Corp. on review for upgrade following the announcement of a deal to merge the company with PPG Industries, Inc.'s commodity chemicals business.

As a result of the transaction, PPG's shareholders will own over half of the equity of the combined company and PPG will receive $900 million in cash.

If the transaction is completed as planned, Moody's would likely raise Georgia Gulf's corporate family rating by one notch to Ba2.

"This transaction will greatly improve Georgia Gulf's size, vertical back-integration into chlor alkali and its manufacturing flexibility," Moody's senior vice president John Rogers said in a news release. "Although the increase in debt is significant, it will not adversely impact the combined company's credit metrics."

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