S&P: DuPont on watch

Standard & Poor's said it placed all its ratings on E.I. DuPont de Nemours & Co., including the A long-term corporate credit rating and the A-1 commercial paper rating, on CreditWatch with negative implications.

This followed news that DuPont intends to acquire unrated Danisco A/S for $6.3 billion, including assumed net debt, subject to regulatory approval and the tender of more than 90% of Danisco shares.

The agency said it believes the acquisition of Danisco would improve DuPont's already excellent business risk profile by adding a growth-oriented specialty chemicals business with high and relatively stable operating profitability.

It would strengthen DuPont's position in industrial biotechnology and nutrition and align with its strategic goals of addressing the food and energy requirements of a growing global population, S&P said.

If the transaction closes as currently contemplated, it would have a moderately negative financial impact on DuPont, the agency said.

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