Moody's may downgrade US Ashland on ISP acquisition

01 June 2011 21:33  [Source: ICIS news]

HOUSTON (ICIS)--Moody's Investors Service may downgrade the ratings outlook of US-based Ashland because the company plans to acquire International Specialty Products (ISP) for $3.2bn (€2.2bn), the ratings firm said on Wednesday.

During its review, Moody's will consider the outlook of the combined companies, potential synergies and the possibilities of cost savings, it said.

Moody's will also review financing costs and any environmental clean-up costs from long-shuttered operations.

Overall, Moody's considers the ISP acquisition a positive step for Ashland, because it will expand the company's exposure to personnel-care, pharmaceutical and other fast-growing markets.

Ashland and ISP make biocides, oilfield chemicals, pharmaceutical ingredients, cosmetics and other fine chemicals.

($1 = €0.69)

By: Al Greenwood
+1 713 525 2645

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