Moody’s rates Ingevity Ba2, notes Ba3

Moody's Investors Service said it assigned Ingevity Corp. a Ba2 corporate family rating and a Ba3 rating to its proposed $300 million senior unsecured notes.

Proceeds will be used to fund the planned acquisition of pine chemicals business from Georgia-Pacific LLC (A3 stable), which was announced in August 2017 and expected to close by early 2018.

The outlook is stable.

Moody’s said the Ba2 corporate family rating reflects Ingevity's strong profitability, ample free cash flow generation with a modest debt leverage and conservative financial policy, but also takes into account its relatively small business scale, reliance on key raw material suppliers and a short operating history after its spin-off from WestRock Co. (Baa2, stable) in 2016.

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