Leverkusen, Germany – International rating agency Moody's Investors Service has reassessed Covestro's existing investment-grade rating, Covestro announced 31 July.
Due to the sustained good earnings situation and the significantly improved balance sheet structure, Moody's has raised the credit rating for the company from Baa2 to Baa1 with a stable outlook.
“The improvement in our rating is the result of a disciplined financial strategy,” said Dr. Thomas Toepfer, CFO of Covestro. “We have succeeded in using the successful business development of recent years to consistently reduce our debt and sustainably strengthen our balance sheet.”
With 2017 sales of €14.1 billion and around 16,200 employees, Covestro manufactures polymer materials – principally polyurethanes and polycarbonates – at 30 production sites worldwide.
Since Moody's first Baa2 rating in October 2015, Covestro has improved its debt ratio, expressed by total net debt to EBITDA for the last 12 months, from 2.2x to 0.5x.