Fitch rates Griffon notes B+

Fitch Ratings said it assigned a rating of B+ with recovery rating of RR4 to Griffon Corp.'s planned $500 million of senior unsecured notes due 2027.

The proceeds will be used to repay a like amount of the company's senior unsecured notes due 2022.

Fitch said it currently rates Griffon's long-term issuer default rating at B+, senior secured credit facility at BB+ with recovery rating at RR1 and senior unsecured notes at B+ with recovery rating at RR4.

The outlook is stable.

Griffon completed several sizable transactions in fiscal 2018, including the sale of its plastics business and the acquisitions of ClosetMaid and CornellCookson, Fitch said.

These transactions cemented a shift in Griffon's business portfolio toward home and building products, which now represent 85% of sales, the agency said.

Griffon's other segment, which makes advanced radar and communication systems, represents 15% of sales, Fitch said.

The company benefits from the diversity associated with selling into the residential, commercial and defense markets, the agency said, though its results are now more closely tied to the housing market.

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