Moody's upgrades Orion

Moody's Investors Service said it upgraded the corporate family rating of Orion Engineered Carbons SA to Ba2 from Ba3, along with its probability of default rating to Ba2-PD from Ba3-PD.

Moody's also said it upgraded to Ba2 from Ba3 the ratings on the €175 million multi-currency revolving credit facility borrowed by Orion Engineered Carbons GmbH and OEC Finance US LLC, two indirect subsidiaries of Orion.

The outlook is stable.

The upgrades acknowledge the positive track record of the company over the last two years with solid financial metrics and liquidity profile, Moody's said.

The company has a conservative financial policy with a net debt leverage target ratio of between 2x and 2.5x, the agency explained.

Orion's business profile is further strengthened by the capacity increase in specialized carbon black products, where it can extract higher pricing than in the more commoditized parts of the rubber business, Moody's said.

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