Moody’s cuts OQ Chemicals

Moody’s Ratings said it downgraded the backed senior secured instrument ratings of the term loan Bs issued by OQ Chemicals Holding Drei GmbH and OQ Chemicals Corp., to Caa2 from B3. The issuers are subsidiaries of OQ Chemicals International Holding GmbH (OQC). The agency also lowered OQ Chemicals International’s corporate family rating to Caa2 from B3 and probability of default rating to Caa3-PD from B3-PD.

“The downgrade of OQC's CFR, PDR and its subsidiaries' instrument ratings reflects the withdrawal of support of the OQC's parent company OQ SAOC, which is ultimately owned by the government of Oman (Ba1, stable). OQC faces significant debt maturities in October 2024, when its €475 million and $500 million term loans B mature, and the company does not have a clear internal capacity to repay this debt. As such, the risk of some form of default or restructuring over the near term is high.

“Furthermore, the company's existing revolving credit facility (RCF; unrated) will mature in July 2024, reducing its available liquidity,” Moody’s said in a press release.

The ratings remain on review for downgrade.

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