Moody's rates Basell loans Ba2

Moody's Investors Service said it assigned Ba2 (LGD2, 29%) ratings to the €1.65 billion senior secured bank facilities raised by Basell AF SCA and its subsidiaries to refinance part of its original leveraged buyout package.

The agency also affirmed Basell's corporate family and probability-of-default rating at Ba3 and the senior secured guaranteed notes of Basell and Basell Finance Co. at B2 (LGD5, 84%).

The outlook was changed to positive.

Moody's said Basell's performance in 2006 was robust as the company continued to benefit from the cyclical upturn in the polyolefin markets. Strong pricing environment and growing volumes allowed Basell to generate strong free cash flow and to reduce its absolute debt to a more sustainable level. Adjusted leverage was reduced to 3.2x at the end of 2006.

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