Moody's rates Olin notes Ba1

Moody's Investors Service said it assigned a Ba1 rating to Olin Corp.'s proposed $150 million of senior unsecured notes due 2019.

Proceeds from the notes will be used to improve liquidity and pre-fund a debt maturity in 2011, the agency said.

The outlook remains stable.

"While we don't usually encourage companies to take on additional debt, commodity chemical companies entering a down-cycle are always better off with additional cash on the balance sheet, rather than trying to fund cash deficits or upcoming maturities at the bottom of the cycle," stated John Rogers senior vice president at Moody's.

Moody's said it also assigned ratings to the company's shelf registration that had previously been filed with the SEC. Additionally, Moody's affirmed Olin's Ba1 corporate family rating and its other senior unsecured debt ratings.

According to the agency, Olin's Ba1 corporate family rating reflects the concentration of profitability in a single commodity chemical product line, a sizable dividend relative to earnings in the bottom of the cycle and significant environmental liabilities relative to the size of the company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.