Celanese profits jump and refi talk are positive for its bonds, says Citi

Monday, July 21, 2014

Stronger than expected results from chemicals maker Celanese on Friday, along with management comments about potential debt refinancing, could increase the chances of the company making investment grade

Comment by: Anonymous. Posted 9 years ago [2014-07-22 01:11:21]

There's an interesting business strategy question here. A firm like Celanese may well choose to remain NIG. The upgrade to IG would give a measurable reduction in debt cost, but operating and financial constraints come with the higher rating. (The "choice" to remain NIG would happen by Celanese signaling to the rating agencies that it would not expect to maintain leverage and covenant metrics typical of an IG rating.)

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