Research: Periodic Review Announcement: Moody’s Announces Completion of Periodic Review for a Group of Chemical Issuers

New York, August 23, 2022 — Moody’s Investors Service (“Moody’s”) has performed a periodic review of ratings and other ratings associated with the same analytical units for the rated entity or entities listed below.

The review was conducted as part of a portfolio review discussion held on August 16, 2022 during which Moody’s reassessed the adequacy of the ratings in the context of the main relevant methodology(ies), recent developments and a comparison of the financial and operational profile with similar ratings. peers. One possible outcome of periodic reviews is the referral of a rating to a ratings committee.

This publication does not announce any credit rating action or indicate whether or not credit rating action is likely in the near future. Credit ratings and outlook/review status cannot be changed during a portfolio review and are therefore not impacted by this announcement.

Key Scoring Considerations

The primary methodology used for this review was that of chemicals published in June 2022. Please see the Scoring Methodologies page at for a copy of this methodology.

Key rating considerations on a forward-looking basis may include, but are not limited to, the following items summarized below.

Scale: Scale is considered because it is an indicator of a company’s ability to generate revenue and its resilience to shocks, such as sudden changes in demand or rapid cost increases. Scale also greatly influences a chemical company’s market strength and availability of capital. Additionally, scale is an important indicator of a chemical company’s ability to sustain profits and generate cash flow. Scale can provide insight into other strengths of a chemical company, including resilience to changes in product demand, cost absorption, research and development capabilities, and negotiating strength with customers and suppliers. raw material suppliers. Scale is measured using reported total revenue and net property, plant and equipment.

Business Profile: The business profile of a chemical company is important because it greatly influences its ability to generate sustainable profits and operating cash flow. Our assessment is based on our expectations of cash flow volatility. The main aspects of a chemical company’s business profile are its market position, product and geographic diversity, operational execution as well as technological leadership and market position prospects, all of which can reduce the volatility through economic cycles.

Profitability: Profitability is an important indicator of the strength and sustainability of a chemical company and can reflect the competitiveness of its product portfolio. It provides some indication of a chemical company’s ability to weather economic downturns, reinvest in fixed assets, and service debt and other obligations. The relative cost position is important for chemical companies because during cyclical or economic downturns, product prices often drop to the point where only companies with lower costs generate significant cash flow. Profitability can be an important indicator of the value added of a company’s products and whether they are specialty products or basic products, or the profitability of its operating costs. The operating cost position of a chemical company is a function of a number of characteristics, including its size, access to low-cost raw materials, location of assets, labor costs work and capital invested. EBITA margin and return on average assets are indicators of profitability.

Leverage and Hedging: Leverage and cash flow hedging measures provide important insights into the financial flexibility and long-term viability of a chemical business. Strength in this area is an indicator of a company’s investment capabilities and its ability to withstand fluctuations in the business cycle and respond to unexpected challenges. Among others, ratios such as debt/EBITDA, retained cash flow/debt and EBITDA/interest expense are indicators of leverage and hedging.

Financial Policy: Financial policy encompasses management and board tolerance for financial risk and commitment to a strong credit profile. It is an important determinant of the rating, as it directly affects debt levels, credit quality, the future direction of the business and the risk of adverse changes in funding and capital structure. . Financial risk tolerance serves as a benchmark for investment and capital allocation. Cash management is also an important aspect of overall risk management and can provide insight into risk tolerance.

Other Factors: Other factors may include, but are not limited to, financial controls and quality of financial reporting; legal structure of the company; the quality and experience of management; assessments of corporate governance as well as environmental and social considerations; exposure to uncertain licensing regimes; and possible government interference in some countries. Regulatory, litigation, liquidity, technology and reputational risks, as well as changes in consumer and business spending habits, competitor strategies and macroeconomic trends are also considered. .

This announcement only applies to rated entities with EU rated, UK rated, EU approved and UK approved ratings. Rated entities, with non-EU rated, non-UK rated, non-EU approved and non-UK approved ratings may be referenced here to the extent necessary, if they are part of the same analytical unit.

Please see the issuer’s page on for each of the ratings covered, the most recent credit rating action, rating history and press release on the credit rating action, including the rationale for the rating and factors that may cause an improvement or a deterioration in the rating.

List of issuers/rated entities

• AgroFresh, Inc.

• Air Products and Chemicals, Inc.

• Albaugh, LLC

• Albemarle Corporation

• Alchemy US Holdco 1, LLC

• American Rock Salt Company LLC

• ARC Falcon I, Inc.

• Aruba Investments Holdings, LLC

• Ascend Performance Materials Operations LLC

• Ashland LLC

• ASP Chromaflo Holdings II, LP

• ASP Unifrax Holdings, Inc.

• Avery Dennison Corporation

• Avenir Corporation

• Axalta Coating Systems Ltd.

• Bakelite US HoldCo, Inc.

• Blue Tree Holdings, Inc.

• Cabot Corporation

• Celanese US Holdings LLC

• CF Industries, Inc.

• Company Chemours, (The)

• Chevron Phillips Chemical Company LLC

• Compass Minerals International, Inc.

• CSTN Merger Sub, Inc.

• Partners CVR, LP

• Cyanco Intermediate 2 Corp.

• DCG Acquisition Corp.

• Diamond (BC) BV

• Discovery Buyers Society

• Dow Chemical Company (The)

• DuPont de Nemours, Inc.

• EI du Pont de Nemours and Company

• Eagle Intermediate Global Holding B.V.

• Eastman Chemical Company

• Ecolab Inc.

• Ecovyst inc.

• Element Solutions Inc.

• Flexsys, Inc.

• FMC Corporation

• GCP Applied Technologies Inc.

• GEON Performance Solutions, LLC

• GPD Enterprises, Inc.

• HB Fuller Company

• Hexion Holdings Corporation

• Acquisition of secondary market Highline, LLC

• Huntsman Company

• Ingevity Corporation

• Innophos Holdings, Inc. (New)

• International Flavors and Fragrances, Inc.

• INVISTA Equities, LLC

• Koppers Holdings Inc.

• Kraton Corporation

• Kronos Worldwide, Inc.

• Linde plc

• LSB Industries, Inc.

• LSF11 A5 HoldCo LLC

• Lummus Technology Holdings V LLC

• LyondellBasell Industries NV

• Meridian Adhesives Group, Inc.

• Messer Industries GmbH

• Methanex Corporation

• Mineral Technologies Inc.

• Momentive Performance Materials Inc.

• Mosaic Company (The)

• Natgasoline LLC

• New Market Corporation

• NIC Acquisition Corp.

• NOVA Chemicals Company

• Nutrien Ltd.

• Olin Corporation

• US holding company Olympus Water

• Plaskolite PPC Intermediate II LLC

• PMHC II, Inc,

• American borrower Polar, LLC

• Polymer Additives, Inc.

• Borrower Potters, LP

• PPG Industries, Inc.

• Rinchem Company, LLC

• RPM International Inc.

• SCIH Salt Holdings Inc.

• Sherwin-Williams Company (The)

• SK Invictus Intermediate II Sarl

• Sparta US HoldCo LLC

• Trinseo PLC

• Tronox Holdings Plc

• Univar Solutions Inc.

• Valvoline Inc.

• Vantage Specialty Chemicals, Inc.

• Venator Materials plc

• WR Grace Holdings LLC

• Westlake Corporation

This publication does not announce a credit rating action.

For any credit ratings referenced in this publication, please see the issuer/transaction page at

for the most up-to-date information on credit rating actions and rating history.

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