Moody’s changes DSM view to negative

Moody’s Investors Service said it changed the outlook to negative from stable and affirmed Royal DSM NV’s A3 issuer and senior unsecured bond ratings.

“The negative outlook reflects the downside risks associated with DSM’s elevated financial risk profile pro forma the acquisition of Erber Group (Erber),” Moody’s said in a press release.

DSM announced on Friday it would acquire the company in a debt-funded deal that will result in Moody’ s-adjusted debt/EBITDA above 2.5x at least until 2022, the agency said.

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