Fitch downs Akzo Novel outlook to negative

Fitch Ratings said it changed Akzo Nobel NV's outlook to negative from stable following the company's announced plan to spin off its health care businesses within two to three years. The A- senior unsecured debt rating and F2 short-term debt rating are affirmed.

Akzo Nobel is planning a minority initial public offering of its health care business, to be called Organon Biosciences. The timing depends on Organon Bioscience's product pipeline developments, which are expected during the second half of 2006.

As the company's health care business accounted for 44% of fiscal year 2005 group EBIT, the reduced size of Akzo Nobel as a result of the spin-off is likely to have a negative impact on the ratings, the agency said.

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