Moody's assigns Griffon, notes Ba3, loan Baa3

Moody's Investors Service said it assigned Griffon Corp. Ba3 corporate family and probability of default ratings, along with a Baa3 (LGD 2, 10%) rating to the company's $200 million senior secured revolving credit facility, Ba3 (LGD 4, 58%) to the new $500 million of senior unsecured notes offering and a speculative-grade liquidity rating of SGL-2.

The outlook is stable.

The proceeds are intended to refinance all of the existing funded debt at Clopay Ames True Temper Holding Corp.

As such, upon repayment of the debt, all ratings at Clopay will be withdrawn.

The ratings reflect the company's leading market position in many of its product segments, Moody's said, and an expectation of moderate free cash flow and good liquidity over the next year.

Expectations of increased volumes in the plastics segment on new customer gains should further add stability to the company's cash flows, the agency said.

The rating also reflects Griffon's moderately high leverage and relatively modest revenue size within each of its operating segments, Moody's said.

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