Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Dow Chemical Company (The) and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Moody's Investors Service, ("Moody's") has today affirmed the Baa2 long-term issuer rating of EQUATE Petrochemical Co. K.S.C.C ("EQUATE") as well as the (P)Baa2 senior unsecured ratings on the existing GMTN and sukuk programmes established under EQUATE Petrochemical B.V. and EQUATE Sukuk SPC Limited respectively. The affirmation of the Baa2 ratings reflect (1) EQUATE Group's competitive business position given its low-cost structure; (2) a high level of operating efficiency and strong safety record; and (3) healthy operational cash flows and good liquidity even in the currently weak market conditions. The ratings also reflect EQUATE Group's (1) exposure to the cyclical petrochemical industry and its relatively small scale of operations compared to rated peers; (2) high product concentration, with ethylene glycol (EG) representing 76% of 2019 volume sales and polyethylene an additional 17%; and (3) weakened credit metrics, with adjusted gross debt/EBITDA under Moody's estimates of approximately 5.0x for 2019YE from 2.3x in 2018YE.
Moody's Investors Service ("Moody's"), downgraded The Chemours Company's (Chemours) ratings, including the CFR to Ba3 from Ba2, the secured bank facilities to Ba1 from Baa3, and the senior unsecured rating to B1 from Ba3. The outlook on the ratings remains negative, reflecting the heightened and growing level of litigation risk stemming from actions filed by states, environmental regulators, water municipalities and private plaintiffs associated with perfluorochemicals (or PFAS), a family of chemicals used for decades to process a wide range of fluoropolymers. "The downgrade reflects the growing PFAS case load, its impact on the potential ultimate liability, and other adverse developments associated with PFAS litigation" according to Joseph Princiotta, Senior Vice President at Moody's. " The downgrade also reflects profit pressures in flouroproducts and TiO2 and the resulting stress to metrics and cash flow this year," Princiotta added.
Moody's Investors Service has assigned an initial Aa2 rating to Longwood Gardens, Inc.'s (PA) proposed $49 million of Revenue Bonds, Series 2019 (Longwood Gardens, Inc. Project), with a final maturity in 2050. The bonds will be issued by the Chester County Industrial Development Authority. Longwood Garden's Aa2 rating incorporates its high level of wealth and exceptional liquidity, at approximately five years of monthly days cash on hand, relative to its small scope of operations and pro forma debt.
Moody's Investors Service, ("Moody's") assigned Baa1 rating to DuPont de Nemours, Inc.'s (DuPont's) new senior unsecured notes maturing in 2023. "DuPont's new issuance will provide the financial flexibility to refinance their upcoming November maturity while maintaining a solid level of cash cushion during the coronavirus pandemic," said John Rogers, Senior Vice President at Moody's and lead analyst on DuPont.
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Moody's Investors Service, ("Moody's") has revised Aruba Investments, Inc's. (dba ANGUS Chemical Company) outlook to negative from stable. Moody's has affirmed Aruba Investments, Inc.'s B2 Corporate Family Rating (CFR) and B2-PD Probability of Default Rating (PDR). Moody's also affirmed the B1 first lien senior secured term loans and Caa1 senior unsecured notes.
Moody's Investors Service ("Moody's") assigned a Ba3 rating to Olin Corporation's ("Olin") proposed $500 million five year senior unsecured notes. "Olin's proposed debt issuance will enhance cash balances in advance of a $490 million payment to Dow Chemical and an ability to redeem up to $1.2 billion of debt in late 2020," said Ben Nelson, Moody's Vice President -- Senior Credit Officer and lead analyst for Olin Corporation.
Moody's Investors Service ("Moody's") said EWT Holdings III Corp. (Evoqua)'s announced completion of the divestiture of its Memcor product line (Memcor®) to Dupont Safety & Construction (DuPont) is credit positive but it does not impact the company's ratings including the B2 corporate family rating. All rights reserved.
Moody's Investors Service, ("Moody's") has today affirmed the Baa2 long-term issuer rating of EQUATE Petrochemical Co. K.S.C.C ("EQUATE") as well as the (P)Baa2 senior unsecured ratings on the existing GMTN and sukuk programmes established under EQUATE Petrochemical B.V. and EQUATE Sukuk SPC Limited respectively. The affirmation of the Baa2 ratings reflect (1) EQUATE Group's competitive business position given its low-cost structure; (2) a high level of operating efficiency and strong safety record; and (3) healthy operational cash flows and good liquidity even in the currently weak market conditions. The ratings also reflect EQUATE Group's (1) exposure to the cyclical petrochemical industry and its relatively small scale of operations compared to rated peers; (2) high product concentration, with ethylene glycol (EG) representing 76% of 2019 volume sales and polyethylene an additional 17%; and (3) weakened credit metrics, with adjusted gross debt/EBITDA under Moody's estimates of approximately 5.0x for 2019YE from 2.3x in 2018YE.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of DuPont de Nemours, Inc. New York, November 11, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of DuPont de Nemours, Inc. and other ratings that are associated with the same analytical unit. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.
Moody's Investors Service, ("Moody's") affirmed Olin Corporation's ("Olin") Ba2 Corporate Family Rating ("CFR"), upgraded the ratings on the company's credit facilities to Baa3 from Ba2 based on improved positioning within the company's capital structure, and, in light of a credit agreement amendment that will result in meaningful secured debt in the company's capital structure, downgraded the senior unsecured debt ratings to Ba3 from Ba2. Moody's also upgraded the company's Speculative Grade Liquidity ("SGL") Rating to SGL-2 from SGL-3 based on greater expected cushion of compliance under amended financial maintenance covenants, ability to use the delayed draw term loan to fund an upcoming major payment, and several other liquidity-enhancing actions.
Moody's Investors Service ("Moody's") said EWT Holdings III Corp. (Evoqua)'s announced completion of the divestiture of its Memcor product line (Memcor®) to Dupont Safety & Construction (DuPont) is credit positive but it does not impact the company's ratings including the B2 corporate family rating. All rights reserved.
Moody's Investors Service, ("Moody's") has today assigned a (P)Baa2 rating to EQUATE Petrochemical Co. K.S.C.C's ("EQUATE") new GMTN programme that is established under MEGlobal Canada ULC. This is because bonds issued under this programme will be unconditionally and irrevocably guaranteed on a joint and several basis by EQUATE and The Kuwait Olefins Company K.S.C.C. ("TKOC"). On 3 March 2020, Moody's affirmed EQUATE's Baa2 issuer rating and changed the outlook to negative from stable.
Moody's Investors Service (Moody's) downgraded NOVA Chemicals Corporation's (NOVA) corporate family rating (CFR) to Ba2 from Ba1, probability of default rating to Ba2-PD from Ba1-PD and senior unsecured notes rating to Ba3 from Ba2. "The downgrade reflects the high leverage coming into a cyclical downturn in the ethylene and polyethylene chain that could last through 2021," said Paresh Chari Moody's analyst. "NOVA's balance sheet has increased significantly since 2017 due to the Geismar acquisition and from the litigation payment to The Dow Chemical Company (Dow), leaving it more vulnerable to cyclical downturns."
Moody's Investors Service ("Moody's") downgraded long-term ratings for Olin Corporation ("Olin"), including the Corporate Family Rating ("CFR") to Ba2 from Ba1 and senior unsecured debt ratings to Ba2 from Ba1, and downgraded the company's Speculative Grade Liquidity Rating ("SGL") to SGL-3 from SGL-2. The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets.
Announcement of Periodic Review: Moody's announces completion of a periodic review of ratings of Aruba Investments, Inc. New York, November 07, 2019 -- Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of Aruba Investments, Inc. and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers.
Moody's Investors Service has upgraded Pierce County School District 1 (Steilacoom), Washington's outstanding general obligation unlimited tax (GOULT) bonds to Aa3 from A1. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating.
Moody's Investors Service, ("Moody's") affirmed the Baa3 ratings of International Flavors and Fragrances, Inc. ("IFF") and its Prime-3 rating for commercial paper. The outlook revision follows the announcement that IFF has signed a definitive agreement to merge with the DuPont De Nemours, Inc.'s ("DuPont") Nutrition and Biosciences business for approximately $26.2 billion in cash and equity. "The negative outlook reflects the significant size of the transaction, the remaining integration risk from the Frutarom transaction and the lack of a consistent growth record at DuPont's Nutrition and Biosciences ("N&B") business, as well as credit metrics that are not reflective of the Baa3 rating" said Domenick R. Fumai, Moody's Vice President and lead analyst for IFF.
Moody's Investors Service, ("Moody's") assigned A3 ratings to E.I. du Pont de Nemours and Company's (EID's) proposed senior unsecured notes. Roughly half of the proceeds from the debt issuance are expected to be used to prepay a portion of the company's unfunded pension liability, leaving the company's gross adjusted leverage unchanged for this portion of the issuance, with the balance of proceeds held in cash to shore up liquidity and serving as an offset to seasonal working capital needs, which tend to be very large and peak at about $4.0 billion. The company's short-term commercial paper rating is unchanged at Prime-2.