S&P rates Lennox notes BBB-

Standard & Poor's said it assigned a BBB- senior unsecured debt rating to Lennox International Inc.'s proposed $200 million senior unsecured notes based on preliminary terms and conditions. The notes were issued under the company's shelf registration for well-known seasoned issuers filed on Dec. 1, 2008.

The notes will be senior unsecured obligations and will be equal in right of payment to all of Lennox's existing and future senior unsecured and unsubordinated indebtedness, S&P said. They will be guaranteed, on a senior unsecured basis, by each of Lennox's domestic subsidiaries that guarantee payment of any indebtedness under its domestic revolving credit facility.

The proceeds will be used for general corporate purposes, including paying down existing borrowings under its $650 million revolving credit facility, the agency said.

The ratings reflect the company's prudent financial policy that has resulted in the maintenance of strong credit measures over the past several years in spite of difficult operating conditions due to weak residential and commercial construction and repair markets, S&P said.

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