S&P cuts Basell to junk

Standard & Poor's said it lowered its long-term corporate credit rating on Basell NV to BB+ from BBB-.

The ratings remain on CreditWatch, where they were placed on Dec. 10, 2004, however, the implications have been revised to negative from developing.

S&P said the rating actions follow the announcement made by Basell's two shareholders Royal Dutch/Shell Group of Cos. (AA/stable/A-1+) and BASF AG (AA-/stable/A-1+) of the sale of their respective 50% stakes in the group to a consortium led by Access Industries, together with the Chatterjee Group, for €4.4 billion, including debt.

The rating actions reflect S&P's assessment of Basell's stand-alone credit quality as no longer being investment grade.

"The support Basell had so far received from its significantly higher rated parents was key to the previous rating," said S&P's Olivier Beroud. "It is highly unlikely that the new owners would be able to provide the same degree of comfort from a credit standpoint."

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.