Moody's confirms Dynea ratings

Moody's Investors Service said it confirmed the B3 senior implied rating and the Caa2 senior notes rating of Dynea International Oy, a 100%-owned subsidiary of Dynea Oy.

The outlook remains negative.

Moody's said the confirmation of the ratings reflects the addition of a new six-year credit facility under the Dynea Chemicals senior credit agreement for €31.7 million, providing liquidity to the company; the waiver by the banks of covenant breaches relating to 2003 and the revision of the group's financial covenants for first through fourth quarter 2004, providing Dynea with more headroom.

Moody's said the negative outlook reflects the challenging business and financial environment in which Dynea operates. Meeting the covenants in third and fourth quarter 2004 will require an improved performance. Any lack of improvement in Dynea's cash flow generation compared to the second half of the year 2003 would likely result in a negative rating change.

Ratings affected by this confirmation are as follows: The Caa2 rating on the €250 million in 12.25% senior notes of Dynea International Oy, the B3 senior implied rating for Dynea International Oy, and the Caa2 senior unsecured issuer rating.

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