S&P keeps Linde, BOC on watch

Standard & Poor's said its BBB+ long-term and A-2 short-term corporate credit ratings on Linde AG and its A long-term and A-1 short-term corporate credit ratings on The BOC Group plc remain on CreditWatch with negative implications, where they were placed on Jan. 25, following Linde's announcement that it would tender an offer to acquire BOC.

The agency said it plans to lower the ratings on both entities to BBB- on completion of the transaction, which is scheduled for Sept. 5.

The outlook will be stable.

At the same time, the subordinated debt rating on Linde's three outstanding hybrid bonds will be lowered to BB from BBB-, the agency added.

S&P noted that the ratings on Linde reflect its position as a leading manufacturer in the profitable and predictable industrial-gas business, with a world market share of about 22%, adding that the ratings are constrained by its aggressive leverage after the BOC acquisition.

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