Moody’s rates Chemours notes B1

Moody's Investors Service said it assigned a B1 rating to the new $500 million senior unsecured notes due 2027 issued by Chemours Co.

The outlook remains stable.

Proceeds are expected to be used for working capital and general corporate purposes, including the $335 million payment of settlement costs relating to the PFOA multi-district litigation settlement, if finalized.

In February, E.I. DuPont de Nemours and Co (A3, negative) and Chemours (Ba3, stable) announced that they agreed in principle to a global settlement with plaintiffs in the PFOA litigation in the amount of $670.7 million, which is a positive development for both companies.

“The assigned B1 rating and the current Ba3 CFR rating, reflect Chemours' position as the leading global producer in TiO2 pigments, where scale, technology and ore flexibility allow for industry-leading margins over time,” Moody’s said in a news release.

“Other strengths include leading market positions across much of the fluoroproducts branded franchise, which continues to have a favorable growth outlook from Opteon – a leader in the new HFO generation of auto refrigerant products.”

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