Moody's rates Lennox notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Lennox International Inc.'s new $200 million, seven-year senior unsecured notes. The ratings on its universal shelf were affirmed.

The outlook remains stable.

The new senior unsecured notes will be used to repay outstanding indebtedness under the company's $650 million revolving credit facility and for other purposes, including repurchases of shares of the company's common stock. The unsecured notes carry the same guarantee as the company's existing revolving credit facility, not rated by Moody's.

The ratings reflect the company's ability to sustain strong credit metrics during the economic downturn and the anticipation of an improvement in operating performance as revenue growth in a recovering economy supports margin expansion from the company's leaner cost structure, Moody's said.

Lennox's ability to manage through the downturn has been helped by its revenue and product mix, the agency said.

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