Fitch cuts Dow, puts Rohm on watch

Fitch Ratings said it downgraded and placed them on Rating Watch negative Dow Chemical Co.'s issuer default rating to BBB+ from A-, senior unsecured revolving credit facility to BBB+ from A- and senior unsecured debt to BBB+ from A-.

The agency also placed on Rating Watch negative Rohm and Haas Co.'s BBB+ issuer default, senior unsecured revolving credit facility and senior unsecured debt ratings. The short-term ratings were affirmed.

The actions follow Dow's plans to acquire Rohm and Haas for $18.8 billion, which includes $3.5 billion in assumed debt.

Given Dow's plan for financing the deal, pro forma balance sheet debt-to-EBITDA ratio would rise to 2.4 times for the combined company, compared with Dow's 1.7 times as of March 31, Fitch noted.

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