PQ sale may lead to ratings downgrade - Moody's

01 June 2007 21:20  [Source: ICIS news]

HOUSTON (ICIS news)--Moody's Investors Service said on Friday that it was reviewing PQ Corporation's ratings for a possible downgrade following an announcement that the specialty chemical maker's parent company was being bought by The Carlyle Group.

PQ has a corporate family rating of B1.

Moody's said it was reviewing the ratings because PQ's parent company, Niagara Holdings, is being bought by The Carlyle Group for $1.5 bn (€1.1bn). The deal should close in the third quarter.

The review reflects the likelihood of greatly increased leverage following the closing of the sale, Moody's said. The service expects that the sale will be financed with a significant amount of debt

A PQ spokesman said he would not comment because he was unaware of Moody's reviewing the company's ratings.

PQ is based in Valley Forge, Pennsylvania. It is a large inorganics producer.

($1 = €0.74)

By: Al Greenwood
+1 713 525 2653

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