S&P rates Owens Corning notes BBB-

Standard & Poor's said it assigned a BBB- rating to Owens Corning's new senior unsecured notes due 2022.

The proceeds will be used to purchase up to $250 million of its $650 million 6.5% senior notes due 2016 and up to $100 million of its 9% senior notes due 2019, S&P said.

Owens Corning plans to use the remaining proceeds to reduce revolving credit borrowings and for general corporate purposes, the agency said.

After adjusting for the proposed transactions and for pension and other obligations, S&P said it expects the company will have debt of about $2.6 billion at yearend.

However, operating results and credit measures are expected to improve in 2013, considering projections of 930,000 housing starts in 2013, compared with 760,000 in 2012 and modest GDP growth near 2% over the next 15 months, the agency said.

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