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Moody's lifts Solutia
Moody's Investors Service said it raised the ratings of the unsecured debt of Solutia Inc. to Baa2 and withdrew its corporate family rating, senior secured term loan rating and probability of default rating.
The agency said these actions follow the closing of the acquisition of Solutia Inc. by Eastman Chemical Co. and the irrevocable transfer of cash to the trustee that is sufficient to fund the redemption of Solutia's 8¾% senior notes due 2017 and 7 7/8% senior notes due 2020.
Moody's also affirmed Eastman's Baa2 senior unsecured ratings, it Prime-2 rating for commercial paper and its stable outlook.
"The acquisition of Solutia will stress Eastman's Baa2 rating for the next 12 to 18 months until it has the opportunity to de-lever and grow the combined company," said John Rogers, a Moody's senior vice president, in a news release.
The agency said Solutia's unsecured notes have been raised to a level that is on par with Eastman's rating due to the irrevocable deposit of funds with the trustee.
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