Fitch lowers Sherwin-Williams ratings to "A-"
CHICAGO (AP) — Fitch Ratings on Friday cut Sherwin-Williams Co.'s ratings to "A-" from "A," citing the additional debt and risk related to its pending acquisition of a Mexican paint company.
The credit rating service also removed the Cleveland-based paint company's investment grade ratings from review for possible downgrade. The outlook is stable.
Fitch originally placed Sherwin-Williams' ratings under review in November after it announced plans to buy Consorcio Comex SA de CV in a deal worth about $2.34 billion, including debt.
The deal is expected to close in the later part of the second quarter.
Fitch said the Comex acquisition comes with a significant amount of debt and risk related to the integration of the company into Sherwin-Williams' existing operations.
It noted that while Sherwin-Williams has successfully integrated smaller companies in the past, this deal comes with additional risk, because Comex' larger size and operations in Mexico and Canada.
Sherwin-Williams shares fell 44 cents to $187.96 in afternoon trading.