Moody's: Ashland view positive

Moody's Investors Service said it moved Ashland Inc.'s outlook to positive from stable and affirmed its Ba1 corporate family rating and existing debt ratings.

The outlook change follows news of Ashland's plan to sell its distribution business to TPG Capital in a transaction that is expected to close in the March quarter. The agency said it views the sale of the distribution business as a credit positive for Ashland.

The $930 million selling price represents a high valuation and expected net proceeds of about $825 million will allow the firm to repay debt, fund growth initiatives and increase financial flexibility, Moody's said.

The positive outlook reflects the fact that Ashland's credit metrics have improved over the past two years to investment grade levels and the sale of the distribution business provides clarity on the composition of Ashland's business portfolio, the agency said.

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