S&P drops American Standard

Standard & Poor's said it lowered its corporate credit rating on American Standard Inc. to BBB- from BBB.

At the same time, the agency said it affirmed its BBB- senior unsecured debt ratings on the company, adding that it removed all of the ratings from CreditWatch, where they were placed with negative implications on Feb. 1, in connection with the company's plan to separate its three businesses.

The outlook is stable.

The agency said that the downgrade reflects its assessment that, following its pending separation, which is near completion, American Standard, the legacy company, will have a weaker business risk profile with the loss of substantial product, end market and geographic diversity.

S&P noted that the ratings on American Standard, which will be renamed Trane, reflect its leading market shares, well-known brand names, well-established distribution channels and a large percentage of less cyclical replacement sales.

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