S&P might cut Westlake Chemical, up Axiall

S&P said it placed its BBB+ corporate credit rating on Westlake Chemical Corp. and the issue-level ratings on its debt on CreditWatch with negative implications.

At the same time, the agency placed its BB- corporate credit rating on Axiall Corp. and the issue-level ratings on its debt on CreditWatch with positive implications.

"The CreditWatch placement reflects the likelihood that Westlake will acquire Axiall Corp. for $33 per share in an all-cash transaction, representing an enterprise value of approximately $3.8 billion, including debt and certain other Axiall liabilities," S&P credit analyst Sebastian Pinto-Thomaz said in a news release.

The agency anticipates that this transaction could result in weaker pro forma leverage measures for Westlake, which could lead to a lower rating. It also anticipates that the acquisition of Axiall by a higher-rated entity could benefit Axiall's credit quality.

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