Moody’s might lower Bluestar, bonds

Moody's Investors Service said it placed China National Bluestar (Group) Co., Ltd.'s Baa2 issuer rating under review for downgrade.

The agency also placed the following ratings under review for downgrade:

• The Baa2 senior unsecured rating for the $500 million bonds due 2018 and $500 million bonds due 2020 issued by Bluestar Finance Holdings Ltd. and guaranteed by China National Bluestar. Both are supported by a Keepwell deed and a deed of purchase undertaking by China National Bluestar’s parent, China National Chemical Corp. (ChemChina, unrated); and

• The provisional Baa2 rating on the $500 million senior perpetual securities issued by Bluestar Finance and guaranteed by China National Bluestar. The provisional status of the rating reflects the pending registration of guarantee with China's State Administration of Foreign Exchange.

Moody’s said the action was prompted by ChemChina's Feb. 3 announcement that it agreed to acquire the Swiss agrochemical and seeds company Syngenta AG (A2 negative). The intended offer values Syngenta's total outstanding share capital at $43 billion. The acquisition is subject to anti-trust reviews and approvals from relevant countries.

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