Fitch: Kennametal notes BBB

Fitch Ratings said it assigned a rating of BBB to Kennametal Inc.'s planned issuance of $300 million in fixed rate 10-year senior unsecured notes.

The proceeds will be used to fund the repayment of $300 million in senior unsecured notes that mature in June 2012.

Pending such use, the company intends to use the proceeds to repay any borrowings outstanding under its revolving credit facility and for general corporate purposes.

Kennametal has an issuer default rating of BBB.

The outlook is stable.

Fitch said it estimates leverage will increase to about 1.2 x upon issuance.

This ratio is still consistent with the rating, the agency said.

The ratings reflect the company's leading market share in both its industrial and infrastructure segments, Fitch said, and strong presence in emerging markets.

The company has a solid liquidity position and expected stable cash flow generation, the agency added.

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