S&P puts BorsodChem on watch

Standard & Poor's said it placed its BB long-term corporate credit rating on BorsodChem Rt on CreditWatch with negative implications, following BorsodChem's announcement of the receipt of a takeover bid from Permira.

The CreditWatch placement reflects the agency's concerns regarding BorsodChem's potential higher debt load and subsequent weaker credit protection measures if this sale materializes, S&P said, noting that Permira may finance its takeover by putting additional, material debt into the group.

S&P added that the CreditWatch status will be resolved once the takeover process is clarified, notably in terms of additional debt, shareholder returns, financial policy and updated group strategy.

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