16 September 2008 06:14 [Source: ICIS news]
SINGAPORE (ICIS news)--Moody’s Investors Service may downgrade the credit ratings of German chemicals firm BASF as the company explores financial options to fund its Swiss franc (Swfr) 6.1bn ($5.5bn/€3.9bn) takeover bid for Ciba, the ratings agency said on Tuesday.
Ciba’s ratings were also placed under review on concerns about the company’s financial flexibility upon acquisition and questions about its ability to reverse its falling operating margins.
Moody’s said BASF faced a challenging operating environment given weaker demand and rising raw material prices in its chemicals, plastics and functional chemicals products.
BASF’s ratings will be evaluated based on its liability structure following the takeover, the ratings firm said, adding that the company currently had an ‘Aa3’ rating for senior unsecured debts.
BASF had global sales of around euro (€)58bn ($ 82.5bn) in 2007.
($1 = €0.70, $1 = Swfr1.11)To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|