Moody's upgrades outlook for US Dow debt on earnings growth

02 November 2010 01:18  [Source: ICIS news]

HOUSTON (ICIS)--Moody's Investors Service upgraded the outlook on of Dow Chemical debt to stable from negative because the company keeps beating earnings forecasts, the ratings firm said on Monday.

Also, Moody's upgraded the outlook because Dow has concentrated on paying off debt, with billions of dollars worth of divestments since its acquisition of Rohm and Haas in 2009.

Furthermore, Dow's earnings have beaten expectations since it closed on the Rohm and Haas deal, Moody's said.

Longer term, Dow should benefit from low prices for natural gas and natural gas liquids (NGLs), Moody's said.

In fact, Dow has an advantaged ethylene position, which should help it develop some sort of a plastics deal in the next 12-18 months, Moody's said.

Such a deal would further bring down Dow's debts, Moody's said.

For more on ethylene visit ICIS chemical intelligence
For more on Dow visit ICIS company intelligence
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By: Al Greenwood
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