S&P raises credit ratings for Germany’s Evonik

09 May 2012 18:44  [Source: ICIS news]

LONDON (ICIS)--Standard & Poor’s (S&P) has raised its credit ratings for Germany-based specialty chemicals major Evonik because of the company’s relatively reduced exposure to cyclical end-markets, among other factors, the agency said on Wednesday.

The upgrade comes as Evonik’s owners are considering an initial public offering for the Essen-based producer.

S&P said it was recognising Evonik’s “impressive operating results and somewhat stronger-than-peer positions in areas such as consumer specialties and animal nutrition”.

At the same time, Evonik’s management remained committed to reducing the company’s sizeable pension deficit, S&P said.

The agency added that Evonik would gain additional financial flexibility through the planned sale of its real estate business.

S&P raised its long-term credit rating for Evonik Industries and subsidiary Evonik Degussa to “BBB+” from “BBB”.

The agency also raised its issue ratings on Evonik’s unsecured debt to “BBB+” from “BBB” and it affirmed Evonik’s “A-2” short-term corporate credit rating.

Evonik chief financial officer Wolfgang Colberg said that the upgrade confirms the company’s strategy to focus on specialty chemicals and appreciates Evonik’s recent performance.

By: Stefan Baumgarten
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