Left Menu
Development News Edition

Moody's lowers UPL Corp ratings to stable from positive

Moody's lowers UPL Corp ratings to stable from positive
Image Credit: ANI

Moody's on Monday lowered agrochemical company UPL Corporation ratings to stable from positive following weaker than expected operating performance of the group. "The change in outlook to stable from positive reflects the weaker than expected operating performance of the broader UPL Group, and our expectation that it will take longer for its credit metrics to improve to a level appropriate for a higher rating," Moody's vice president Kaustubh Chaubal said in a statement here.

At the same time, Moody's has affirmed the company's Baa3 long-term issuer rating and the Baa3 rating on the company's senior unsecured notes maturing in 2021, it said. Given today's change in outlook to stable from positive, an upgrade is unlikely over the next 12-18 months, it added.

The stable outlook also incorporates the expectation that the company will not undertake any large or transformational acquisitions, at least until Arysta LifeScience is completely integrated and the company's financial profile has been restored to pre-acquisition levels, it said. In January 2019, UPL Corp completed the acquisition of Arysta LifeScience for USD 4.2 billion, funded with a mix of debt (USD 3 billion) and equity (USD 1.2 billion).

Arysta's asset-light and lean operations with a strong presence in Africa, Russia and Eastern Europe complement UPL Group's leading position in India, the Americas and Western Europe, as well as its vertically integrated manufacturing capabilities, it said. In addition, Arysta's product offering, with a strong presence in herbicides, bio solutions, seed treatment, and other products complements UPL Group's products and has helped increase its market share across these verticals.

Moody's ratings for UPL Corp also considers the following environmental, social and governance (ESG) factors. UPL Group faces a moderate level of environmental risk, primarily stemming from the risk of air, soil and water emissions, as well as from the clean-up of hazardous waste. In addition, the company's earnings are susceptible to adverse weather conditions.

Climatic conditions such as drought or excessive rainfall can have a significant impact on demand for crop protection products, although the company's geographic diversification somewhat mitigates this risk.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

Download The Devdiscourse News App for Latest News.



SDG13: How you can reduce global warming by changing your food habits

The mega narratives of various international organizations give the impression that fighting global warming is only a job of government agencies. However, the European Investment Bank EIB has designed a questionnaire which besides making th...

SDG2030: Challenges of technological applications in advancing Global Goals

Application of contemporary and future information technologies may go milestones in advancing sustainable development goals SDGs provided the challenges are overcome and implementation is ensured....

Sustainable Fashion: UNDP wants you to wear properly to reduce Global Warming 

The experts have estimated that the amount of water used to prepare one pair of jeans and a T shirt is sufficient for a person to drink for 13 years....

World Economic Forum suggests 8 Education Models for Future Schools

In a report released on January 14, the World Economic Forum WEF has also picked two examples for each model from throughout the world. The WEF has emphasized that these schools systems would be crucial for Forth Industrial Revolution.&#160...


Latest News

Giannis, Bucks easily dispatch of Nets

Giannis Antetokounmpo encountered little difficulty collecting 29 points and 12 rebounds as the Milwaukee Bucks led most of the way and cruised to a 117-97 victory over the Brooklyn Nets on Saturday night in New York. Antetokounmpo posted h...

Australian government to aid tourism industry as bushfires recede

The Australian government said on Sunday it will channel A76 million 52 million to the tourism industry as recent heavy rains have dampened many of the monthslong bushfires, allowing the country to look to recovery. The number of fires burn...

McDavid nets pair as Oilers trounce Coyotes

Connor McDavid scored two goals and Riley Sheahan had a goal and three assists as the Edmonton Oilers moved into a tie for first place in the Pacific Division with a 7-3 victory over the visiting Arizona Coyotes on Saturday afternoon. Josh ...

No right to live in India if you can't accept Vande Mataram: Pratap Sarangi amid anti-CAA protests

Accusing Congress of spreading misinformation about the Citizenship Amendment Act CAA, Union Minister Pratap Chandra Sarangi on Saturday said that those who do not accept Indias freedom, unity, and Vande Mataram, have no right to stay in th...

Give Feedback