Moody's gives Griffon notes B2, view to stable

Moody's Investors Service said it assigned Griffon Corp.'s proposed new senior unsecured notes a B2 rating and changed the outlook to stable from negative. At the same time Moody's affirmed Griffon's ratings, including the company's B1 corporate family rating and the B2 rating on the company's senior unsecured notes. The company's speculative grade liquidity remains SGL-2.

Proceeds will be used to refinance a portion of the company's existing $1 billion senior unsecured notes due 2022.

“Today's ratings affirmation and outlook change to stable reflects the company's deleveraging and improved free cash flow generation following the portfolio reshaping undertaken over the last few years, and our expectation that continued organic revenue growth and gradual margin expansion will maintain leverage on a Moody's adjusted debt/EBITDA basis under 5.5x,” said Moody's lead analyst Oliver Alcantara, in a press release.

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