S&P gives BBB to Worthington notes

S&P said it assigned a BBB issue-level rating to Worthington Industries Inc.'s proposed $200 million senior unsecured notes due 2032.

Proceeds will be used to repay the outstanding borrowings under the company’s revolving credit facility and revolving trade accounts receivable securitization facility, as well as for general corporate purposes. Until they are used, the agency expects the company will keep these funds on its balance sheet in the form of cash and short-term investments.

Worthington’s BBB corporate credit rating and stable outlook are unchanged. This reflects the agency’s expectation that the company will maintain fully adjusted debt to EBITDA between 1.75 times and 2.25 times and funds from operations to debt of about 30% to 40% over the next two years, which S&P continues to view to be somewhat strong for the rating.

S&P said the ratings reflect Worthington's fairly stable credit ratios and strong operating performance, supported by solid demand fundamentals in key end markets, such as automotive and nonresidential construction.

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