Moody's ups Dow view to positive

Moody's Investors Service said it changed the outlook on the ratings of the Dow Chemical Co. to positive from stable due the substantial improvement in financial performance in the first quarter and the expectation that full year EBITDA will be well above prior projections.

This improved financial forecast indicates that Dow should be able to strengthen its credit metrics to levels that would support a higher rating over the next three to four quarters, the agency said.

Dow's record performance in the first quarter of 2011 greatly exceeded Moody's estimate and caused the agency to raise the full year estimate for its reported EBITDA to more than $9 billion from $8.3 billion.

If Dow can continue to produce strong financial results for 2011, Moody's said it will likely raise the company's rating by one notch.

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