Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ 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 inform​ation 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

1.            Unless 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.               

2.            You 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 Information.

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.​​​

I AGREE
Rating Action:

MOODY'S AFFIRMS THE RATINGS OF CELANESE AND BCP (SENIOR IMPLIED AT B1) AND CHANGES OUTLOOK TO NEGATIVE AFTER ANNOUNCEMENT OF ACETEX ACQUISITION

28 Oct 2004
MOODY'S AFFIRMS THE RATINGS OF CELANESE AND BCP (SENIOR IMPLIED AT B1) AND CHANGES OUTLOOK TO NEGATIVE AFTER ANNOUNCEMENT OF ACETEX ACQUISITION

Approximately $3.5 Billion of Long-Term Debt Affected

New York, October 28, 2004 -- Moody's Investors Service affirmed the ratings of BCP Caylux Holdings Luxembourg S.C.A. (BCP), CNA Holdings Inc. (CNA; a subsidiary of Celanese AG), and Crystal US Holdings 3 LLC's (CUSHLLC) following the announcement of the acquisition of Acetex Corporation for roughly $525 million. However, Moody's has changed the ratings outlook for these companies to negative. Moody's also affirmed the ratings of Acetex Corporation's senior unsecured debt at B2, as well as its stable outlook. These actions reflect the assumptions that BCP will increase the size of its securitized bank and term loan facilities to finance this acquisition; and that Acetex's debt may remain outstanding given the current price of the notes, even though BCP will be required to conduct a "Change of Control" tender.

The following summarizes the ratings activity:

Ratings affirmed, outlook changed to negative:

Crystal US Holdings 3 LLC's / Crystal US Sub 3 Corp.

Senior discount notes, $513 million due 2014 ($500 million current value) - Caa2

Senior Implied - B1

Senior Unsecured Issuer Rating -- Caa2

BCP Caylux Holdings Luxembourg S.C.A.

Guaranteed senior secured revolver, 313 million Euros ($380 million) due 2009 -- Ba3

Guaranteed senior secured credit-linked revolving facility, 187 million Euros ($228 million) due 2009 - Ba3

Guaranteed senior secured term loan B, 500 million Euros ($608 million) due 2011 - Ba3

Guaranteed senior secured term loan C, 350 million Euros ($424 million) due 2011 - B2

Guaranteed senior subordinated notes, 1,244 million Euros ($1,465 million) of US dollar and Euro denominated notes due 2014 - B3

CNA Holdings Inc

Senior unsecured - B1

Ratings affirmed:

Acetex Corporation

Guaranteed senior unsecured notes, $265 million due 2009 -- B2

Senior Implied* -- B2

Senior Unsecured Issuer Rating* -- B3

*: These ratings will be withdrawn upon the completion of the transaction.

The B1 senior implied rating of CUSHLLC reflects elevated total debt to LTM EBITDA levels (6.2 times as of June 30, 2004 inclusive of the Acetex transaction versus just under 6.0 times prior to the acquisition), as well as the anticipation this credit metric will meaningfully improve in 2005. The anticipated improvement in 2005 metrics is due to the combination of changes to the general and administrative expenses at Celanese, the start of a low cost methanol supply agreement in 2005, and the improving supply/demand situation in its businesses, including acetyls and key downstream markets: VAM (vinyl acetate monomer) and PVOH (polyvinyl alcohol).

The negative outlook reflects the substantial increase in debt at the combined entities, roughly $1.3 billion, relative to initial financing plan for BCP, as well as the ability to add additional debt to support further transactions. Furthermore, the absence of a demonstrated improvement in both EBITDA and cash flow, prior to pursuing additional transactions, raises Moody's perception of credit risk. The outlook also reflects the expectation that BCP's debt will increase by year-end (relative to June 30, 2004 debt levels) due to a $455 million pension contribution, and that balance sheet cash will be largely used to buy-out minority shareholders at Celanese AG. The downgrade of BCP in late June reflected Blackstone's willingness to add additional cash-pay debt, as well as the anticipation that they might utilize the latitude that exists in its bond indentures to add a significant amount of additional debt.

The affirmation of the ratings of BCP and CNA Holdings Inc reflects that even with the increase in debt related to the acquisition pro forma debt to EBITDA on a proforma LTM basis is 6.2 times for the period ended June 30, 2004 (pro forma EBITDA of $615 million: $50 million from Acetex and $565 million from Celanese). Third quarter numbers have not been released for Celanese, but Acetex's LTM EBITDA for the period ending September 30, 2004 rose to $60 million. The B1 senior implied rating assumes 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) will rise to $140-170 million. 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), or if financial performance is significantly weaker than anticipated. A quick completion of the conversion to a US domiciled entity, a faster expansion of operating margins, and increases in cost savings are potential upsides to the credit and could result in a return to a stable rating outlook in 2005.

Acetex is a low-cost European producer of acetyls, and a North American producer (via its AT Plastics subsidiary) of ethylene vinyl acetate copolymers and LDPE homo-polymers, for industrial and consumer applications, and films, for the agricultural and construction markets. Acetex's production facility in France should improve Celanese's market position in Europe, as Celanese shut down their German acetyls plant in 2000 and now imports products from Singapore or the US. However, Acetex's acetic acid unit can not be expanded easily, thereby placing a limit on the plant's future output. In North America, Celanese's can supply VAM to AT Plastic's plant in Edmonton, Alberta, Canada at a lower cost than Acetex. These synergies plus improving margins in Europe should boost 2005 EBITDA significantly above the LTM pro forma level of $50 million. While these trends should improve the credit metrics at Acetex over the near-term, Moody's believes that the benefits are outweighed by its position within a highly leveraged structure at BCP and concern over the financial structure at Acetex subsequent to the "Change of Control" tender. The ratings on Acetex's notes could be raise if credit metrics at BCP improve to the levels cited in the paragraph above, and the company's credit profile is not impaired by its actions taken by BCP subsequent to the "Change of Control" tender.

BCP Caylux Holdings Luxembourg S.C.A. is the majority owner of Celanese AG and a subsidiary of Crystal US Holdings 3 LLC. Crystal US Holdings 3 LLC is a subsidiary of Blackstone Crystal Holdings Capital Partners(Cayman) IV Ltd., an affiliate of The Blackstone Group.

Celanese AG, headquartered in Germany, 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 €4.1 billion in 2003.

New York
Mark Gray
Managing Director
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
John Rogers
VP - Senior Credit Officer
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

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.

​​​​
Moodys.com