Moody’s might cut International Flavors

Moody's Investors Service said it placed all of the ratings for International Flavors & Fragrances, Inc. on review for possible downgrade.

The agency said the action follows the company’s announcement that it will acquire Frutarom for $7.1 billion, including the assumption of Frutarom's net debt.

"The transaction represents a meaningful change financial policy, but management appears very committed to maintaining investment-grade ratings through public statements made earlier today," Ben Nelson, Moody's vice president, senior credit officer and lead analyst for International Flavors, said in a news release.

Moody’s said it expects pro forma adjusted leverage in the mid-4 times when the transaction closes in the second half of 2018.

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