Moody's rates Boral notes Baa2

Moody's Investors Service said it assigned Baa2 senior unsecured ratings to Boral Finance Pty Ltd.'s $450 million 3% guaranteed senior unsecured notes due 2022 and $500 million 3% guaranteed senior unsecured 144A Regulation S notes due 2028.

The notes are guaranteed by Boral Ltd. and certain other subsidiaries.

The outlook is stable.

The proceeds will be used to repay the acquisition loan facility for the Headwaters acquisition, as well as for general corporate purposes, Moody's said.

The stable outlook reflects the expectation that Boral's operating profile and earnings will continue to improve, in line with a recovery in the U.S. housing market and expected increase in infrastructure activities in Australia, the agency said.

The ratings are not expected to be upgraded in the near term, given the inherent cyclicality in the building and construction materials industry, Moody's added.

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