Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
18 Jan 2005
MOODY'S AFFIRMS B1 SR. IMPLIED RATINGS OF CRYSTAL US HOLDINGS 3 LLC (CELANESE); CHANGES OUTLOOK TO STABLE; SR. SECURED RATINGS DOWNGRADED TO B1 DUE TO REFINANCING
Approximately $4 Billion of Long-Term Debt Affected
New York, January 18, 2005 -- Moody's Investors Service affirmed the ratings (B1 senior implied) of
Crystal US Holdings 3 LLC's (CUSH; a subsidiary of Celanese Corporation).
Moody's downgraded the senior secured bank debt BCP Crystal US Holdings
Corporation (BCPUS) and assigned B1 ratings to the new tranches --
a $220 million US revolver and $450 million delayed draw
term loan C. The downgrade is a direct result of the refinancing
that is expected to occur concurrent to the company's planned initial
public offering. Once the refinancing is complete, senior
secured debt will represent the majority of the outstanding debt and over
60% of the rated debt at CUSH and its subsidiaries; and therefore
Moody's lowered the rating for the senior secured bank debt to B1
senior implied rating. Moody's also downgraded the senior
unsecured ratings of CNA Holdings Inc. as they will remain contractually
subordinated to the secured debt at BCPUS. Moreover, due
to Moody's expectation that the company's financial performance
will continue to improve in 2005, especially its acetyls business,
the outlook has been changed to stable.
The following summarizes the ratings activity:
Crystal US Holdings 3 LLC
Senior Implied - B1
Senior Unsecured Issuer Rating - Caa2
Senior Discount Notes due 2014 - Caa2
BCP Crystal US Holdings Corporation
Guaranteed senior subordinated notes due 2014 - B3
BCP Crystal US Holdings Corporation
Guaranteed senior secured revolver due 2009 ($220 million) --
Guaranteed senior secured term loan B (additional increment of $935
million) due 2011 -- B1
Guaranteed senior secured delayed draw term loan C due 2011 -- B1
BCP Crystal US Holdings Corporation (formerly an obligation of BCP Caylux
Holdings Luxembourg S.C.A.)
Guaranteed senior secured revolver due 2009 -- B1 from Ba3
Guaranteed senior secured credit-linked revolving facility due
2009 -- B1 from Ba3
Guaranteed senior secured term loan B due 2011 -- B1 from Ba3
CNA Holdings Inc
Senior unsecured -- B2 from B1
BCP Crystal US Holdings Corporation
Guaranteed senior secured floating rate term loan C due 2011
The B1 senior implied ratings of CUSH take into account its elevated leverage
for a cyclical commodity producer, significant exposure to volatile
petrochemical feedstocks, a financial structure that allows the
company to pursue additional acquisitions, and continuing concern
over the size of the potential payment to minority shareholders at Celanese
AG. The ratings are supported by Celanese's competitive position
in key businesses, significant opportunities for additional cost
reductions, and the expectation of a cyclical peak in its acetyls
business in 2006. Although margins continue to improve, feedstock
prices will remain an issue. The start of an advantageously priced
methanol supply agreement with Southern Chemical Company in 2005 should
positively impact earnings and mitigate some of the company's feedstock
volatility. The ratings also recognize significant competitive
barriers, including process know-how and requirements for
world scale production capabilities.
The stable outlook reflects the improving operating performance and the
expectation that earnings and free cash flow will increase further in
2005 and 2006 due to growth in specialty products and a tighter supply/demand
balance in acetyls. This positive earnings outlook is tempered
by the company's recent acquisitions and the further increases in
debt that are likely prior to meaningful debt reduction in net debt.
The stable outlook also reflects the substantial increase in net debt
from September 30, 2004 levels due to an additional $375
million pension payment in the fourth quarter and the possibility that
minority shareholders at Celanese AG may receive over $400 million
if any of the litigation pending in the German courts adversely impacts
BCPUS. Moody's noted that CUSH reported consolidated cash
of over $800 million as of September 30, 2004.
While Moody's noted that the upcoming IPO of Celanese Corporation
will result in lower debt levels, the issuance of $200-250
million of preferred stock will offset some of this benefit. Proceeds
from the IPO will be used to repay debt that is non-cash pay for
the next four and a half years; the preferred stock will likely result
in cash dividends, albeit at a low rate, given the plan to
begin paying a dividend to common stockholders in the second quarter of
The planned refinancing is contingent upon repayment of the senior discount
notes at CUSH. In the refinancing, BCPUS will increase the
size of its secured bank facilities by $1.6 billion and
utilize the proceeds to repay roughly $525 million senior subordinated
notes, $350 million of the second lien notes, and complete
the acquisitions of Acetex Corporation and Vinamul Polymers, which
will increase secured debt by $450 million. Subsequent to
the refinancing and acquisitions, secured debt will be a majority
of the consolidated company's outstanding debt and could represent
as much as 60% of total debt, assuming the credit facilities
and letter of credit facility are fully drawn. Given the increase
in the size of the secured credit facilities relative to the underlying
assets and the fact that they will constitutes a majority of the company's
debt, Moody's can no longer notch up from the senior implied
rating. However, the refinancing will provide the company
with greater flexibility in managing its debt going forward, using
excess cash and free cash flow from operations to repay outstandings under
the facility while maintaining the ability to borrow upwards of $500
million (revolving credit facilities will total roughly $600 million)
to pay minority shareholders at Celanese AG. The downgrade of the
ratings at CNA Holdings Inc reflects their contractual subordination to
the substantial amount of secured debt at BCPUS. The market capitalization
of the company subsequent to the IPO would indicate that the market value
of the assets is significantly higher than the book value, hence
subordinated bondholders could experience a greater recovery than otherwise
implied by the ratings.
The consolidated company's financial metrics continue to improve.
As of September 30, 2004, pro forma debt to LTM EBITDA,
adjusted for future cash pension payments and minority shareholder payments
of up to $500 million, is 5.2 times (assumes LTM pro
forma EBITDA of $680 million). Moody's anticipates that
this ratio will decline to less than 5 times by the end of 2005 and that
free cash flow (cash from operations less capital expenditures) to total
debt will increase to the 7-9% range. The ratings
could be lowered if the company fails to achieve yearly free cash flow
of at least $100 million (excluding extraordinary items and restructuring
costs), if financial performance is significantly weaker than anticipated
or if the company pursues additional acquisitions that meaningfully increase
leverage. A quick resolution of the minority shareholder issue
at Celanese AG, a faster expansion of operating margins, and
increases in cost savings could result in positive pressure on the ratings.
BCP Crystal US Holdings Corporation recently acquired the assets and liabilities
of BCP Caylux Holdings Luxembourg S.C.A., who
is the majority owner of Celanese AG. BCP Crystal US Holdings Corporation
is a subsidiary of Crystal US Holdings 3 LLC. Crystal US Holdings
3 LLC is a subsidiary of Celanese Corporation. Celanese Corporation,
headquartered in Dallas, Texas is a leading global producer of acetyls,
emulsions (including vinyl acetate monomer), acetate tow and engineered
thermoplastics. CNA Holdings Inc. is the holding company
that contains Celanese's North American operating companies. Celanese
reported sales of over $5 billion for the LTM ending September
Corporate Finance Group
Moody's Investors Service
Senior Vice President
Corporate Finance Group
Moody's Investors Service
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.