S&P affirms Clariant

Standard & Poor's said it affirmed the BBB- long-term and A-3 short-term corporate credit ratings on Clariant AG and removed the ratings from CreditWatch, where they were placed in February.

The outlook is negative.

The action results from news that Clariant intends to acquire Sud-Chemie AG for CHF 2.5 billion, CHF 1.5 billion of which will be debt funded, S&P said.

The agency said it believes that Clariant's business risk profile benefits from the acquisition, but that its financial risk profile will be weakened.

The positive impact on Clariant's business risk profile will come from Sud-Chemie's catalyst and adsorbents business, which should enhance Clariant's segment diversity and global footprint, as well as its exposure to more stable and higher growth end-markets, S&P said.

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