21 September 2010 11:27 [Source: ICIS news]
LONDON (ICIS)--Moody's Investors Service has assigned Germany-based specialty chemicals producer Evonik Industries a “Ba1” Corporate Family Rating (CFR) and a stable outlook, the credit ratings agency said in its first rating assignment for the company on Tuesday.
Moody's said the rating reflected Evonik’s “strong business profile in chemicals with leading market positions, large scale, wide end-product and end-market diversity with a good mix between more cyclical upstream activities and stable specialty applications”.
The credit rating agency also said that Evonik’s chemicals business had above-average operating margins.
In addition, Moody’s said that Evonik had a clear strategy to focus on its strong chemical division by partial divestments of the energy and real estate businesses.
Evonik recently announced that it would divest its global carbon black business as it continues to focus investment on key growth markets.
Evonik has a strong liquidity profile, with currently over €1.36bn ($1.77bn) in cash on its balance sheet as well as access to an undrawn €1.5bn revolving credit facility, Moody's said.
The stable outlook Moody's assigned to Evonik’s rating reflected the agency's expectation that the group would continue to focus on deleveraging, it said.
“The agency's expectation is predicated upon a gradual recovery in chemicals demand across all regions with continued stronger growth patterns anticipated in emerging economies,” it said.
“The strong recovery in emerging market economies [has] been the main driver of the recovery in the European chemicals industry,” it added.
($1 = €0.77)
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