Moody’s ups Albemarle view to positive

Moody's Investors Service said it affirmed the ratings of Albemarle Corp. at Baa3 following the announcement that it would sell its Chemetall metal surface treatment business to BASF for $3.2 billion and use a portion of the proceeds for debt reduction.

Ratings affirmed include the P-3 commercial paper rating and Baa3 senior notes and eurobonds. The transaction is expected to close by year end 2016.

The outlook was changed to positive from stable.

Moody’s said the positive outlook reflects the strong business positions, margins and outlook of the remaining bromine and lithium-based portfolio, particularly with respect to the unique positioning in lithium resources, market position, product diversity and long term outlook.

The ratings and the positive outlook also consider the agency’s anticipation that Albemarle will engage in M&A activity that is small-to-modest in scale; it but does not anticipate further transformational acquisitions.

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