Saint-Gobain's credit rating cut, BPB's confirmed by Moody's

Date: 23 November 2005
Source: Forbes

Date: 23 November 2005

Saint-Gobain's long-term credit rating was cut to Baa1 from A2 by Moody's Investors Service, following its agreed 3.89 bln stg bid to acquire UK plasterboard group BPB PLC.

The senior credit rating for BPB was confirmed at Baa1, Moody's said.

Saint-Gobain's net debt will double to about 13 bln eur from 6.2 bln eur currently as a result of the acquisition, Moody's estimated, adding that a reduction of debt is unlikely over the next 2-3 years, despite disposals.

'In addition, the rating action is based on Moody's expectation that management will continue to pursue its growth strategy,' the agency said.

600450 Saint-Gobain's credit rating cut, BPB's confirmed by Moody's glassonweb.com

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