Moody’s lowers Griffon notes to B2

Moody's Investors Service said it affirmed Griffon Corp.’s B1 corporate family rating and B1-PD probability of default rating.

At the same time, the agency downgraded the rating on the company's senior unsecured notes to B2 from B1, which was in accordance with Moody's Loss Given Default model (LGD) and is reflective of the newly proposed capital structure that takes into consideration the $100 million add-on to the company's existing senior unsecured notes.

If the company upsizes and were to issue more than $125 million, the ratings could face pressure. On a pro forma basis, the notes have a balance of $700 million, up from $600 million prior to the transaction.

Concurrent with this action, Moody's affirmed the company's SGL-2 speculative grade liquidity rating.

The outlook remains stable.

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