Moody’s upgrades Cytec bonds

Moody’s Investors Service said it upgraded the backed senior unsecured notes issued by Cytec Industries Inc. due 2025 and the senior unsecured bonds due 2027 originally issued by Solvay SA to Baa1 from Baa2. Furthermore, the agency raised the rating of the undated subordinated notes originally issued by Solvay with a first call date in 2025 to Baa3 from Ba1.

The bonds have been transferred to Syensqo SA, which was spun off this month.

Syensqo now guarantees Cytec notes. Previously these instrument ratings of Cytec and Solvay SA were on review with direction uncertain. The upgrades conclude the review with direction uncertain for these instruments that was started on June 16, after the spinoff was announced.

“Moody's expects Syensqo's Moody's adjusted pro forma gross leverage for 2023 to be at around 1.7x and a Moody's adjusted net leverage of around 1x. These credit metrics strongly position the company in the Baa1 rating category and provides the company with some headroom to sustain credit metrics in line with its Baa1 rating even in a demand environment, which is expected to remain relatively weak in 2024,” Moody’s said in a press release.

The outlook is stable.

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