Moody's rates Huntsman notes Baa3

Moody's Investors Service said it assigned a Baa3 rating to Huntsman International LLC's proposed issuance of senior unsecured notes due 2029.

The proceeds will be used for redemption of the 2020 notes and general corporate purposes, including the repayment of revolver and securitization borrowings.

The outlook is stable.

The proceeds will be used to extend maturities, Moody's said.

The ratings reflect Huntsman's leading positions in formulated urethanes and epoxy resins, which have high margins, low capital intensity and organic growth rates well in excess of GDP levels, the agency said.

The ratings are supported by the improvement in financial performance over the past several years from all four of its business segments despite some volatility due to commodity prices, Moody's said.

The company's growth strategy for the polyurethanes and advanced material segments should provide the opportunity to generate higher growth while expanding margins over time, the agency said.

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