Moody's lifts Arkema view to positive

Moody's Investors Service said it changed Arkema's outlook to positive from stable and affirmed its Baa2 long-term issuer rating.

By revising Arkema's outlook to positive, Moody's said it considered the company's deleveraging track record on the back of successfully integrating Bostik and other acquired companies, Moody's said.

Over the last five years, the company has increased its share of specialty chemicals sales from about 60% to 70% currently, the agency said, and is on a path to further grow it to 80%.

The changed business mix should make the company more resilient to better withstand demand volatility over time, Moody's said.

The ratings also take into account downside risk factors, including a weakening of the overall macroeconomic environment and demand uncertainty or a slowdown in key end markets, the agency said.

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