Moody’s downgrades Albemarle

Moody’s Investors Service said it downgraded the senior unsecured ratings of Albemarle Corp. to Baa3 from Baa2. The agency also lowered the backed senior unsecured ratings for Albemarle New Holdings GmbH and Albemarle Wodgina Pty Ltd. to Baa3 from Baa2.

Moody’s changed the outlook to stable from ratings under review. These actions conclude the review started on April 13, as a result of the company’s pre-pandemic stressed metrics and the added pressure and uncertainty in many of the company’s end markets due to the impact of the pandemic, the agency said.

“While the metrics are expected to remain stressed through next year for the Baa3 rating, we anticipate recovery and an improving trend in performance, albeit of uncertain shape, in the company’s three major segments and respective end markets – lithium, bromine specialties and catalysts,” according to Joseph Princiotta, a Moody’s senior vice president, in a press release.

“The pending and eventual asset sales will offset the negative free cash flow due to high capex and help quicken the pace of gross and net debt improvement and metric recovery,” Princiotta added.

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