Moody's reviews Allnex, PTT Global

Moody's Investors Service said it placed the B2 corporate family rating and the B2-PD probability of default rating of Allnex (Luxembourg) & Cy SCA on review for upgrade. Concurrently, Moody's placed on review for upgrade PTT Global Chemical PCL’s ratings and all of the senior secured debt instruments issued by Allnex Sarl and Allnex USA Inc.

This decision to review follows the announcement that a subsidiary of PTT Global will acquire Allnex.

Moody's said it expects that Allnex’s debt will be repaid as part of the deal. “The rating action reflects Moody's expectation that Allnex's credit profile will substantially benefit from the acquisition of Pttgc,” the agency said in a press release.

“In response to the announcement, Moody's has placed Pttgc's ratings on review for upgrade. In case of a successful closing of the transaction and repayment of Allnex's outstanding debt, Moody's expects to withdraw Allnex's rating. Moody's expects to conclude the review upon close of the company's sale or upon termination of the merger agreement,” the agency said.

The agency’s review will focus on the effect of the transaction on Allnex's credit profile and the level of consolidation within the larger group. Moody's said it will also consider any changes to Allnex's credit profile upon the closure of the transaction and the details on the capital structure of the enlarged entity with respect to Allnex's current debt instruments and any plans to refinance its debt.

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