Moody’s Upgrades Covestro’s Rating
Due to the engineering plastics producer’s sustained good earnings situation and the significantly improved balance sheet structure, international ratings agency Moody's has reassessed the credit rating for Covestro, raising it from Baa2 to Baa1 with a stable outlook.
Since Moody's first Baa2 rating in October 2015, Covestro has improved its debt ratio, expressed by total net debt to EBITDA for the last 12 months, from 2.2x to 0.5x.
Chief financial officer, Thomas Toepfer, said the improved rating is the result of a disciplined financial strategy, noting that the company has succeeded in using its positive business development of recent years to consistently reduce debt and sustainably strengthen its balance sheet. The Moody’s upgrade “reflects the capital markets’ increased confidence in our financial strength,” Toepfer said.
The Leverkusen-based former Bayer MaterialScience meanwhile has revised its financial target for full year 2018 upward. This follows a strong second quarter in which sales revenue added more than 10% to nearly €4 billion, EBITDA gained 16% to €985 million and net income advanced by nearly a quarter to €604 million.