Moody's views Chemtura's agreement to sell agrochemicals business Chemtura AgroSolutions to Platform Specialty Products for approximately US$1B as credit negative but says Chemtura's credit profile will still support Ba3 rating
Elyse Blye
NEW YORK
,
April 18, 2014
(press release)
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Moody's Investors Service has today said that it views as credit negative Chemtura Corporation's (Chemtura, Ba3 stable) recently announced agreement to sell its agrochemicals business, Chemtura AgroSolutions, to Platform Specialty Products Corporation (Platform, B1 stable) for approximately $1 billion, or $950 million in cash and 2 million shares of Platform's common stock. Moody's views this asset sale as credit negative for Chemtura. This is because of the near-term loss in diversity and profitability that AgroSolutions brought to Chemtura's portfolio, along with uncertainty around the level of proceeds that will be used for acquisitions or debt reduction versus shareholder remuneration. However, Chemtura's ratings are unaffected by this recent announcement as Moody's believes that, pro forma for the asset sale and even under a downside scenario, Chemtura's credit profile will still support a Ba3 rating.
For further information, please see the issuer comment for Chemtura on www.moodys.com.
Chemtura Corporation manufactures and sells application-focused specialty chemicals. Chemtura operates in a wide variety of end-use industries, including transportation, construction, packaging, lubricants, plastics for durable and non-durable goods, and electronics. Sales for the financial year-end December 2013 were approximately $2.2 billion.
Anthony Hill
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Brian Oak
MD - Corporate Finance
Corporate Finance Group
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
Releasing Office:
Moody's Investors Service, Inc.
250 Greenwich Street
New York, NY 10007
U.S.A.
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653
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