Moody's may lower Ashland

Moody's Investors Service said it placed the corporate family, probability of default and debt ratings of Ashland Inc. (Ba1 corporate family rating) under review for a possible downgrade.

This rating action follows the company's announcement that it has entered into an agreement to purchase Hercules Inc. (Ba1 corporate family rating) in a transaction valued at $3.3 billion or $23.01 per Hercules share based on Ashland's July 10 closing stock price and including $0.7 billion of net assumed debt, the agency noted.

Under the terms of the agreement, Ashland will acquire all of the outstanding stock of Hercules, paying $18.60 in cash and 0.093 shares of Ashland common stock for each common share of Hercules, the agency added.

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