Moody’s gives Baa3 to Brenntag notes

Moody's Investors Service said it assigned a Baa3 rating to Brenntag Finance BV’s proposed of senior unsecured notes guaranteed by Brenntag AG.

The outlook is stable.

Moody’s said the rating reflects Brenntag's: (a) Large scale, as the leading global chemical distributor with a roughly 6% market share, with strong positions in Europe and North America, the largest chemical markets; (b) solid business profile, characterized by material product and geographic diversification, further enhanced by recent acquisitions; (c) stable operating profitability over time, which reflects the nature of an asset-light distribution business model characterized by a structurally low fixed-cost base and high inventory turnover; and (d) favorable industry trends in outsourcing to distributors that resulted in the distribution industry growing faster than overall chemicals sales.

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