Moody’s cuts Ashland after Hercules acquisition

14 November 2008 17:51  [Source: ICIS news]

TORONTO (ICIS news)--US credit agency Moody’s has lowered its ratings for specialty chemicals producer Ashland following the completion of Ashland’s $2.6bn (€2.1bn) acquisition of rival Hercules on Friday.

 

Moody’s lowered its corporate family rating for Ashland to Ba2 from Ba1.

 

The outlook for the ratings was negative following Ashland’s lower third-quarter earnings and lowered expectations going forward due to the uncertainty over the length of the global economic slowdown, Moody’s said.

 

Ashland had financed part of the Hercules acquisition with a $750m bridge loan that was previously expected to be refinanced through the issuance of unsecured notes, Moody’s said.

 

Given current market conditions, Moody's withdrew its rating on the proposed unsecured notes due 2016, as Ashland would likely maintain the bridge facility, it added.

 

($1 = €0.79)

 

For more on Ashland visit ICIS company intelligence

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By: Stefan Baumgarten
+1 713 525 2653

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