Research Update: Owens Corning Assigned 'A-2' Short-Term Issuer Credit Rating; $1.5 Billion Commercial Program Rated 'A-2'

Roofing, insulation and doors producer Owens Corning has established a $1.5 billion commercial paper (CP) program. We assigned our ?A-2? short-term issuer credit rating to Owens Corning and our ?A-2? short-term issue-level rating to its CP program. Our ?BBB? long-term issuer credit rating and stable outlook on the company are unchanged. The stable outlook reflects our view that Owens Corning will maintain S&P Global Ratings-adjusted leverage in the 2x–3x range and sustain free operating cash flow (FOCF) to debt in the 15%-25% range over the next two to three years. We expect the company will maintain these credit measures even through continued slower business conditions and across financial policy decisions around acquisitions and shareholder returns. Our rating reflects the company?s

...Rating Component Scores Component Foreign currency issuer credit rating ###/STABLE/A-2 Local currency issuer credit rating ###/STABLE/A-2 Business risk 3 - Satisfactory Country risk 1 - Very Low Risk Industry risk 3 - Intermediate Risk Competitive position 3 - Satisfactory Financial risk 3 - Intermediate Cash flow/leverage 3 - Intermediate Anchor ### Diversification/portfolio effect 3 - Neutral/Undiversified Capital structure Neutral Financial policy Neutral Liquidity Strong Management and governance Neutral Comparable rating analysis Neutral Stand-alone credit profile ###...

Research Update