Moody's rates LyondellBasell loans Ba3, B3

Moody's Investors Service said it assigned a B1 corporate family rating and a speculative grade liquidity rating of SGL-2 to LyondellBasell Industries NV, as well as prospective ratings for debt to be issued by Lyondell Chemical Co., including a Ba3 rating on a $1 billion first-lien term loan and a $2.25 billion first-lien seven year notes, and a B3 rating on $3.25 billion of third-lien eight-year roll-up notes.

Proceeds will be used to refinance the existing debtor-in-possession debt, to fund liabilities required by its bankruptcy court approved plan of reorganization and to provide a roughly $2 billion initial cash balance upon emergence from bankruptcy, Moody's said.

The outlook is stable.

The approved plan of reorganization will remove roughly 90% of LyondellBasell's prior debt and provide access to more than $3 billion of liquidity, ensuring that it will have the resources necessary to further rationalize capacity and make the necessary investments to improve its cost structure over the next several years, Moody's said.

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