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
Related Issuers
Adams (County of) CO
Brazoria County Brazos River Hrbr. Nav. Dist.
Brazos Harbor TX, Industrial Development Corp
Brownsville TX, Navigational District
Camden (County of) GA, Development Authority
Dow Capital B.V.
Dow Chemical Co Employee Stock Own Plan Trust
Dow Chemical Company (The)
Erie County Industrial Development Auth., PA
Evanston (City of) WY
Flora IL
Greater Baton Rouge Port Commission, LA
Guadalupe-Blanco River Authority, TX
Gulf Coast Waste Disposal Authority, TX
Hot Springs (City of) AR
Iberville (Parish of) LA
Joliet Regional Port District, IL
Kanawha (County of) WV
Kanawha (County of) WV, County Commission
Longview TX, Industrial Corporation
Michigan Strategic Fund
Midland (County of) MI
Midland County Economic Development Corp., MI
Mobile (City of) AL
Montgomery (County of) TN, Indust. Devel. Bd.
Moses Lake (Port of) WA, Public Corporation
Mount Carmel IL
New Jersey Economic Development Authority
Ohio (State of)
Ohio Water Development Authority
Oklahoma Development Authority
Port Freeport, TX
Port of Moses Lake Public Corporation (WA)
Puerto Rico Ind Med&Env Poll Ctl Fac Fin Auth
Savannah Port Authority, GA
South Charleston (City of) WV
St. Charles (Parish of) LA
Tallassee (City of) AL, I.D.B.
Tyler (County of) WV
Uintah (County of) UT
Union Carbide Chemicals & Plastics Co. Inc.
Union Carbide Corporation
Webb (County of) TX, Ind. Dev. Corp.
West Baton Rouge (Parish of) LA, Ind Dist #3
West Side Calhoun (County of) TX
West Side Calhoun Cnty Navigation Distr., TX
Wichita (County of) TX, Ind. Dev. Corp.
Young (County of) TX, Ind. Dev. Corp.
Rating Action:

MOODY'S PLACES THE DEBT RATINGS OF UNION CARBIDE (Baa2 SENIOR UNSECURED) UNDER REVIEW FOR POSSIBLE DOWNGRADE AND CHANGES THE OUTLOOK OF DOW CHEMICAL (A3 SENIOR UNSECURED) TO NEGATIVE

31 Jan 2003
MOODY'S PLACES THE DEBT RATINGS OF UNION CARBIDE (Baa2 SENIOR UNSECURED) UNDER REVIEW FOR POSSIBLE DOWNGRADE AND CHANGES THE OUTLOOK OF DOW CHEMICAL (A3 SENIOR UNSECURED) TO NEGATIVE

Approximately $9.5 Billion of Debt Securities Affected.

New York, January 31, 2003 -- Moody's placed the debt ratings of Union Carbide Corporation (UCC) under review for possible downgrade. In addition, Moody's confirmed its ratings on the debt of The Dow Chemical Company (senior unsecured at A3) but changed the outlook to negative. These actions follow the continuing weak financial performance at Dow and Carbide combined with the announcement yesterday that UCC, and hence Dow, have both recorded an additional charge of $828 million (pre-tax) related to potential asbestos-related liabilities.

Rating placed under review for possible downgrade:

Union Carbide Corporation - Senior unsecured debt, notes, industrial revenue bonds at Baa2

Ratings confirmed:

The Dow Chemical Company - Senior unsecured debt, notes, MTN's, debentures and industrial revenue bonds at A3; multiple seniority shelf: (P)A3 for senior debt and (P)Baa2 for preferred stock; short term rating for U.S. and euro-commercial paper at Prime-2

The ratings of Union Carbide have been placed under review for possible downgrade due to the substantial increase in its estimated asbestos-related liabilities, primarily from the inclusion of an estimate for future claims. In addition, Moody's is concerned that this increase in potential liability may portend a further escalation in cash expenses for litigation and settlements. Furthermore, the size of the reserve relative to the company's asset base is substantial. Carbide continues to suffer from a very weak operating environment and remains free cash flow negative. Dow does not guarantee the debt of Union Carbide.

The review will focus on the potential for a further deterioration in UCC's credit profile due to future increases in litigation and settlement costs. In addition, the review will attempt to gauge the ability and willingness of the company's insurers to continue to reimburse the company for up to $1.35 billion of expenses related to this liability. The review will also examine the impact of the shut down of the majority of Carbide's domestic ethylene capacity in 2003 on the company's future financial profile.

Dow announced yesterday that Carbide would shutdown its ethylene crackers in Texas City and Seadrift, Texas. Together these crackers produced over half of Carbide's domestic ethylene capacity and roughly 10% of Dow's global ethylene capacity.

The change in the outlook on debt of Dow Chemical reflects the size of the reserve relative to the company's existing asset and equity base. In addition, the outlook reflects Moody's current belief that the potential increase in cash expenditures related to asbestos is significant given the anticipated weak operating performance at Dow over the near-term.

The A3 rating for Dow considers its leading market and technology positions in a diverse portfolio of chemicals and plastics. Moody's anticipates that the company's financial metrics will remain depressed in the first quarter of 2003. However, Moody's believes that the shutdown of 2.5 billion pounds of ethylene capacity in 2003 should substantially improve the North American supply demand balance and significantly raise margins in the ethylene chain over the intermediate-term. In addition, Dow plans to improve cash flows in 2003 by more than $1 billion through reduced capital expenditures, working capital improvements, and cost reductions. Also, the company will attempt to sell non-core assets, which generated revenue of approximately $1.5 billion in 2002. Moody's believes, that baring an extended conflict in the Middle East, Dow should be able to generate positive free cash flow in 2003 with limited asset sales and without a significant recovery in the US economy.

Dow's Prime-2 rating for commercial paper reflects the company's solid financial liquidity, supported in part by $3 billion in committed credit facilities. These facilities do not have a material adverse change clause related to financial information and litigation on any future drawdown, and, to Moody's knowledge, there are no significant rating triggers within Dow's financial agreements.

Headquartered in Midland, Michigan, The Dow Chemical Company is a diversified chemicals and plastics producer that generated nearly $28 billion of revenues in 2001. Union Carbide, headquartered in Danbury, Connecticut, is a wholly-owned subsidiary of Dow. Union Carbide's 2001 revenues totaled $5.4 billion.

New York
Michael J. Mulvaney
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