Akzo Nobel ratings unchanged on planned biosciences sale, says S&P |
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Wed, 14 Mar 2007 10:27
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LONDON (AFX) - Standard & Poor's Ratings Services said it has retained Dutch pharmaceuticals and chemicals company Akzo Nobel NV's 'A-' long-term issue rating and 'A-2' short-term rating, following the company's plan to sell its biosciences unit for 11 bln eur to US pharmaceuticals firm Schering-Plough Corp.S&P has also retained its stable rating outlook.The sale of the biosciences unit weakens the company's business risk only slightly, as the remaining coatings and chemicals businesses have strong business risk characteristics, S&P said.The rating agency added that it expects Akzo Nobel to redeploy the substantially higher than expected disposal proceeds into its coatings and specialty chemicals business when the deal comes through.S&P stated that it also expects the company to return excess cash to shareholders via share buybacks and dividends at a level that does not impair adequate cash flow protection ratios for the current rating.newsdesk@afxnews.comnpr/akuCOPYRIGHTCopyright AFX News Limited 2007. All rights reserved.The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
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