S&P: Lyondell Chemical on watch

Standard & Poor's said it placed its BB- corporate credit rating on Lyondell Chemical Co. and its related entities, including Equistar Chemicals L.P. also BB- and Millennium Chemicals Inc., rated B+, on CreditWatch with negative implications.

The BB- long-term corporate credit rating on Basell AF S.C.A. and the ratings on related entities remain on CreditWatch with negative implications, where they were placed on June 26, the agency added.

S&P said that the CreditWatch listings reflect the definitive agreement, under which Basell plans to acquire Lyondell Chemical for a total enterprise value of about $19 billion in an all-cash transaction, paying $48.00 per common share.

The agency added that it expects Basell to finance the purchase largely with debt, which will result in a very aggressive capital structure with an estimated debt to EBITDA of about 5x.

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