Moody's lifts E.I. du Pont view to stable

Moody's Investors Service said it affirmed the A3 and prime-2 ratings of E.I. du Pont de Nemours and Co. and changed the outlook to stable from negative.

The action is in response to the company's disclosure of its plan for the balance sheet of DuPont, which is expected to become wholly owned by a new legal entity, Corteva, Inc., Moody's said.

On June 1st, 2019, Corteva Inc. is expected to be spun off from DowDuPont, the agency said, and any existing rated debt of DuPont will become the obligations of Corteva.

The outlook revision reflects a commitment to a more conservative financial policy with minimal long-term debt, Moody's said.

The A3 rating reflects Corteva's scale, market positions, franchise strength, strong distribution and farmer relationships, the agency said, and a robust pipeline that position it very well in what continues to be a competitive and consolidating global agricultural landscape.

Moody's said it expects Corteva to maintain a credit profile consistent with the A3 ratings, including a strong balance sheet with modest adjusted financial leverage and disciplined investment in growing the business and an appropriate dividend payout ratio.

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