Moody's assigns Standard Industries notes Ba2

Moody's Investors Service said it assigned a Ba2 rating to Standard Industries Inc.'s proposed issuance of $250 million of senior unsecured notes due 2027. The issuance is an add-on to the company's $500 million of notes due 2027.

“Moody's views the proposed transaction as credit positive since most of the proceeds from the $250 million add-on will be used to repay the balance of the company's 2023 notes, at which time the rating for these notes will be withdrawn. This will push all refunding risk to late 2024. The balance of the proceeds will be used to add cash to the balance sheet and to pay related fees and expenses in essentially a leverage neutral transaction,” the agency said in a press release.

Standard's Ba2 corporate family rating, Ba2-PD probability of default rating and the Ba2 rating on the company's senior unsecured notes are unchanged, Moody’s said.

The outlook remains stable.

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