TEXT-Moody's revises Guardian Industries outlook

Moody's Investors Service confirmed Guardian Industries Corp.'s senior unsecured rating of A1 and commercial paper program rating of Prime-1.

The outlook has been revised to stable from negative due to Guardian's improved capital structure resulting from debt reduction and an improved maturity profile, as well as its consistent ability to generate substantial operating cash flow. Guardian's continuing focus on profitable growth has enabled it to meaningfully reduce debt incurred from recent acquisitions and expansionary activities, as well as eliminate off balance sheet securitizations. Moody's believes that Guardian's revenue, income and cash flow performance will continue to reflect its conservative financial management and that leverage will be reduced over time to its historical averages. Ratings confirmed are: Guardian Industries Corp.---senior unsecured notes rated A1, short term debt rated Prime-1. Guardian Europe S.A. (guaranteed by Guardian Industries Corp.)--- short term debt rated Prime-1

Guardian continues to demonstrate its ability to generate ample cash flow from operations that it deploys for additional glass manufacturing capacity, investments in research and development activities for leading-edge glass products, acquisitions of businesses that are complementary to its core competency and reduction of debt. Guardian's use of leverage was meaningfully elevated when it acquired two distribution businesses to establish control of its fiberglass product's indirect sales channel. Since then, the company has focused on lowering its use of leverage and has shifted the tenor of its obligations toward medium-term maturities to reduce its short-term refinancing risks.

600450 TEXT-Moody's revises Guardian Industries outlook glassonweb.com
Date: 1 August 2003
Source: Reuters.com

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