Fitch rates Masco notes BB+

Fitch Ratings said it assigned a BB+ with recovery rating of RR4 to Masco Corp.’s proposed issuance of $900 million senior unsecured notes due 2021 and 2026.

These notes will be ranked on a pari passu basis with all other senior unsecured debt, Fitch said.

The proceeds, together with cash on hand, will be used to redeem or repurchase the company’s $1 billion of 6 1/8% senior notes due Oct. 3, 2016 and $300 million of 5.85% senior notes due March 15, 2017.

The outlook is positive.

Masco also has a long-term issuer default rating of BB+, senior unsecured debt rating of BB+ with recovery rating of RR4 and unsecured revolving credit facility rating of BB+ with recovery rating of RR4.

The ratings reflect the company’s leading market position with strong brand recognition in its various business segments, breadth of its product offerings, improving financial results and credit metrics and solid liquidity position, Fitch said.

Risk factors include sensitivity to general economic trends, heightened customer concentration and the cyclicality of the residential construction market, the agency said.

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