Moody's changes AkzoNobel view to negative

Moody's Investors Service said it changed the outlook on Akzo Nobel NV's ratings to negative from stable and affirmed the company's senior unsecured rating at Baa1.

Concurrently Moody's affirmed the ratings of AkzoNobel's outstanding backed senior unsecured notes and senior unsecured EMTN program at Baa1 and (P)Baa1, respectively. Moody's also affirmed AkzoNobel's other short-term and commercial paper program ratings at (P)P-2 and P-2, respectively.

“The change of the outlook on AkzoNobel's rating reflects the company's elevated Moody's adjusted gross leverage of around 4.5x as of Q2-2022 (pro-forma a €750 million bond which has been repaid in July 2022) and the risk that the company's deleveraging trajectory will not be in line with the current Baa1 rating, due primarily to AkzoNobel's high absolute debt coinciding with the weakening demand environment and inflationary pressure,” Moody’s said in a news release.

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