S&P upgrades Airgas

Standard & Poor's said it raised the corporate credit rating on Airgas Inc. to BBB from BBB- and its subordinated debt rating to BBB- from BB+.

The outlook is stable.

"The upgrade reflects the resilience of Airgas' financial performance and improved free cash generation that is expected to continue to support credit measures at or near current levels," S&P analyst Liley Mehta said in a statement.

The company's ongoing operating efficiency programs, stability of cash flow generation and respectable track record of integrating acquisitions should offset modest earnings pressures in the near term, the agency said.

These strengths are tempered by the moderate cyclicality of the manufacturing and industrial markets the company serves, and management's financial policies that favor incremental debt-financed acquisitions to complement organic growth, S&P said.

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