S&P lowers Arkema to negative

Standard & Poor’s said it revised the outlook on Arkema SA to negative from stable.

The agency also said it affirmed the company’s BBB long-term and A-2 short-term corporate credit ratings.

The outlook revision follows news that Arkema plans to acquire adhesive-maker Bostik, S&P said.

The ratings assume that Arkema will be successful in funding the sizable €1.74 billion acquisition in the short term with a mixture of equity, hybrids and debt, the agency said.

S&P also said Bostik’s operations will bring benefits to the group in terms of diversity, as well as low cyclicality and capital intensity.

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