Moody's ups Evonik

Moody's Investors Service said it upgraded the corporate family rating to Baa3 and assigned a Baa3 senior issuer rating to Evonik Industries AG. Moody's also upgraded to Baa3 the rating on the company's €750 million of senior notes.

The outlook is positive.

The upgrade is underpinned by Evonik's strong operating performance as well as the execution on the strategic repositioning plan with the view to focus on the chemicals business as the company contemplates an IPO, the agency said.

In the last several months, Evonik has finalized the disposal of its energy assets and has also advanced towards the closing of the disposal of a non-core carbon black chemicals business, the agency added. At the end of 2010, Evonik took steps to de-risk its pension liability position.

The Baa3 ratings are underpinned by the company's strong business profile, supported by the company's significant size and leading market positions as well as a wide end-product and market diversification of the portfolio, Moody's said.

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