Moody's changes GCP view to positive

Moody's Investors Service said it changed GCP Applied Technologies Inc.'s outlook to positive from stable.

The positive outlook follows the announced acquisition of GCP for $2.3 billion in cash by Compagnie de Saint-Gobain SA, rated Baa2, Moody’s said.

"The positive outlook reflects our expectation that GCP's credit quality will improve after its acquisition by an investment-grade rated company. As part of a much larger company GCP will be able to tap into Saint Gobain's greater corporate resources and the integration will provide cost savings and commercial synergies. GCP will also be subject to Saint Gobain's more conservative financial policy and corporate governance," said Jiming Zou, a Moody's vice president and lead analyst for GCP, in a press release.

The agency concurrently affirmed GCP's Ba3 corporate family rating, Ba3-PD probability of default rating and other instrument ratings. SGL-2 speculative grade liquidity rating remains unchanged.

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