Moody's upgrades Syngenta

Moody's Investors Service said it upgraded Syngenta AG's corporate family rating to Ba1 from Ba2 and its probability of default rating to Ba1-PD from Ba2-PD. Concurrently, the agency raised to Ba1 from Ba2 the guaranteed senior unsecured ratings assigned to its guaranteed subsidiaries Syngenta Finance NV and Syngenta Finance AG and also upgraded to (P)Ba1 from (P)Ba2 their guaranteed senior unsecured MTN program rating. All ratings were placed on review for upgrade.

Syngenta's upgrade to Ba1 reflects the joint restructuring of China National Chemical Corp. Ltd., rated Baa2, and Sinochem Group, ongoing steps to streamline the Sinochem Holdings Corp.Ltd., and lower leverage to more sustainable levels, Moody’s said. Both entities became subsidiaries of a newly established holding company, Sinochem Holdings Corp. Ltd.

“The review for upgrade reflects that Moody's could further upgrade Syngenta's ratings to Baa3 if the rating agency concludes that the joint restructuring and the set-up of Syngenta Group, including potential implementation of the long-planned Syngenta IPO, sufficiently addresses the high legacy leverage at the parent level,” the agency said in a press release.

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