Moody’s could lift Celanese

Moody's Investors Service said it placed the ratings of Celanese Corp. (Ba1 corporate family rating) under review for possible upgrade.

The review follows public comments by its CEO and CFO last week with regard to maintaining total leverage of 2 times on a sustained basis, as well as stating that it plans to refinance its secured term loan with unsecured debt and replace its secured revolver with an unsecured revolver.

The agency previously said that these factors were preventing the company from an upgrade, despite having investment-grade financial metrics and an investment-grade business profile.

"Mark Rohr and Chris Jensen announced that Celanese would maintain 2.0x total leverage, despite its earnings growth targets and potential bolt-on acquisitions," John Rogers, Moody’s senior vice president and lead analyst on Celanese, said in a news release.

"In addition, they stated that they would be refinancing their secured debt with unsecured debt shortly."

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