Moody's rates Cabot notes Baa2

Moody's Investors Service said it assigned a Baa2 rating to Cabot Corp.'s proposed senior unsecured notes.

Cabot's Baa2 senior unsecured rating and stable outlook are unaffected by the issue, Moody's said.

The proposed $300 million notes will be used to repay a portion of Cabot's outstanding commercial paper, improving its liquidity and debt maturity profile, the agency said.

Moody's said it doesn't expect Cabot's total debt to increase as a result of the notes issuance.

The proposed senior unsecured notes will rank equally in right of payment to other senior debt and be structurally subordinated to the liabilities of Cabot's subsidiaries, none of which will guarantee the notes, the agency noted.

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