Moody's downgrades Clariant on poor 2007 results

06 May 2008 15:02  [Source: ICIS news]

LONDON (ICIS news)--Moody’s has downgraded its ratings for Clariant after the Swiss-based specialty chemicals company’s 2007 financial results fell short of expectations, the investors service said on Tuesday.

 

Moody’s said Clariant was not able to fully mitigate the effects of raw material and energy cost increases and competition challenges.

 

“The downgrade reflects the view that continuous industry pressure and a likely slowdown in demand will continue to restrict the company's efforts to bolster its profitability to levels that underpinned its initial rating,” Moody’s said.

 

Clariant’s rating was lowered to "Baa3" from "Baa2", signifying a moderate credit risk. The company’s outlook was unchanged at "stable".

 

Meanwhile, last week Clariant posted a marginal year-on-year rise in its first-quarter operating income to Swiss francs (Swfr)140m ($133m/€86m) on increased pricing and strict cost control.

 

($1 = €0.65/$1 = Swfr1.05)

By: Mark Watts
+44 20 8652 3214

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