S&P affirms ‘A-’ rating for Dow after Kuwait JV

13 December 2007 22:56  [Source: ICIS news]

HOUSTON (ICIS news)--Standard and Poor’s affirmed its “A-” ratings for Dow Chemical with a stable outlook on Thursday following the announcement of a joint venture with Petrochemical Industries Company (PIC) of Kuwait.

Dow plans to form a 50/50 joint venture company with the wholly owned subsidiary of Kuwait Petroleum Corp. (KPC).

Dow will contribute its polyethylene (PE), ethylenamines, ethanolamines, polypropylene (PP), and polycarbonate assets to the venture and will receive pre-tax proceeds of about  $9.5bn (€6.5bn), with expected after-tax proceeds likely to exceed $7bn, Standard and Poor’s said.

"We expect Dow to reinvest most of the proceeds to expand its performance chemicals portfolio and view the announcement as fully consistent with Dow's strategy to improve its position in basic chemicals and derivatives, while continuing to transform the business mix toward its higher growth and differentiated performance products," said Standard & Poor's credit analyst Kyle Loughlin.

Dow shares on the New York Stock Exchange traded in the afternoon at $44.39, up $2.64.

By: Brian Ford
+1 713 525 2653

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