Moody’s: Air Products notes A2

Moody’s Investors Service said it assigned an A2 rating to Air Products & Chemicals, Inc.’s proposed €350 million senior unsecured notes due 2021.

The proceeds will be used for general corporate purposes, which may include repayment and refinancing of debt, including repayment of commercial paper, Moody’s said.

The outlook is stable.

The company’s strong credit profile, combined with accommodative market conditions in Europe, will allow it to issue very attractively-priced euro-denominated notes in advance of upcoming debt maturities in August 2016, Moody’s explained.

The ratings are supported by the company’s strong position in the global industrial gases industry and the inherent industry, the agency said.

The industrial gas industry has high barriers to entry, long-term take-or-pay contracts, pricing flexibility and diverse and stable customer base on an aggregated basis, Moody’s said.

Air Products also improved its credit metrics in recent periods, particularly since company began to focus more intently on cash generation, streamlining and decentralizing operations, the agency added.

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