Moody's eyes Clariant for downgrade

Moody's Investors Service said it placed the Ba1 corporate family rating of Clariant AG, the Ba1-PD probability of default rating and the Ba1 ratings assigned to its CHF 160 million of senior unsecured bonds due in 2024 and CHF 175 million of senior unsecured bonds due in 2022 on review for downgrade. The outlook has been changed to ratings under review from stable.

The review follows Clariant reporting an internal investigation into accounting issues that will delay publication of the results for the fourth quarter and 2021, Moody’s said.

“The review will focus on the internal control issues that have led to the current situation and the actions the company will take to avoid them in future. Confirmation of Ba1 ratings is likely if the investigation is being concluded swiftly thereby preventing the company from losing access to the debt and equity markets and if the financial impact remains as limited as expected by Clariant. Downward pressure is likely should the investigation not be concluded swiftly, if it results in a material financial impact or if internal control failures are severe and not sufficiently rectified,” the agency said in a press release.

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