Moody's rates RPM convertibles Baa3

Moody's Investors Service said it assigned a Baa3 rating to the proposed $200 million of new senior unsecured convertible notes due 2020 to be issued by RPM International Inc.

The proposed new issuance will be offered and sold under its shelf registration filed on April 8, 2011.

Proceeds will largely be used to repay, redeem or refinance RPM's outstanding $200 million senior unsecured notes due Dec. 15, 2013, which are also rated Baa3.

The outlook is stable.

"RPM's credit profile continues to benefit from stable credit metrics and a diverse portfolio of well-known products that supply various consumer and industrial end-markets. Additionally, by refinancing existing debt with these convertible notes, we believe the company will increase somewhat its financial flexibility," Anthony Hill, a Moody's vice president, senior analyst and lead analyst for RPM, said in a news release.

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