S&P reviews Air Products ratings

Standard & Poor's said it placed the A long-term and A-1 short-term corporate credit ratings of Air Products and Chemicals Inc. on CreditWatch with negative implications. Its corporate credit and debt issue ratings were placed on CreditWatch with developing implications.

These actions follow news that Air Products made an unsolicited, all-cash offer for Airgas at $60 per share for a total of about $7 billion, including about $5 billion to acquire the equity and $1.9 billion of assumed debt.

Although the agency said it believes that a largely debt-financed offer weakens the company's capital structure and financial risk profile, it also recognizes the proposed combined company's favorable industry characteristics, stronger business diversity and a credible commitment to debt reduction.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.