Moody’s might drop Eco Services

Moody's Investors Service said it placed all ratings for Eco Services Operations LLC on review for possible downgrade following PQ Corp.’s announcement that it intends to merge with Eco Services in an equity-for-equity transaction expected to close in the fourth quarter of 2015.

Affiliates of the private equity firm CCMP Capital Advisors own large equity stakes in both companies and will be the largest shareholder of the combined entity. PQ has said that this transaction will not trigger the "change of control" clause in Eco Services' notes, so they are likely to remain outstanding at the close of the merger.

However, this transaction will trigger the "change of control" clause in PQ's debt.

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