Fitch downgrades Akzo Nobel on market downturn

07 November 2008 16:11  [Source: ICIS news]

LONDON (ICIS news)--Fitch Ratings on Friday downgraded Akzo Nobel's credit rating as the company faces deteriorating business conditions in the majority of its markets and products.

 

In downgraded Akzo Nobel’s issuer default rating to BBB+ from A-, Fitch said weaker demand caused by the expected recession would pressure the Dutch coatings company’s cashflow and profitability, impacting its credit profile.

 

“Akzo Nobel’s credit metrics could also be impacted by sharply reduced economic growth in emerging regions and the company’s direct exposure to end-markets such as housing and automotives,” said Fitch in a report.

 

Last week the company announced that its third-quarter net profit dropped 23% year-on-year to €157m due to one-off charges.

 

For more on Akzo Nobel visit ICIS company intelligence 
To discuss issues facing the chemical industry go to ICIS connect

ICIS Copyright © Reed Business Information 2009

Author: Mark Watts
+44 20 8652 3214

< previous article(ICIS Chemical Business podcast November 2, 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.