Left Menu
Development News Edition

Moody's lowers UPL Corp ratings to stable from positive

PTI | Mumbai | Updated: 25-11-2019 20:33 IST | Created: 25-11-2019 20:19 IST
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.)


TRENDING

OPINION / BLOG / INTERVIEW

China: A savior for emerging markets or a poison pill?

... ...

Future of Urban Planning: Artificial Intelligence guiding the way

Advances in emerging technologies like Artificial Intelligence and Machine Learning can help us understand our cities better and derive useful insights from real-time data collected through automated models....

Videos

Latest News

Priest injured in Madrid blast dies in hospital

A Catholic priest who was retrieved from the rubble of a Church building in central Madrid that was destroyed by a presumed gas explosion died on Thursday, the Madrid archdiocese said in a statement.Three other people were known to have die...

Chinese rescuers hope to drill shaft to free trapped gold miners

Rescuers in China were drilling new shafts on Thursday to reach gold miners who have been trapped underground for 11 days after an explosion, including one they hope to use to bring the survivors to safety.A total of 22 workers were stuck u...

Milla Jovovich-starrer 'Monster Hunter' to release in India on Feb 5

Filmmaker Paul WS Andersons Monster Hunter, starring actor Milla Jovovich, will hit the Indian theatres on February 5.In a statement, Sony Pictures Entertainment announced that the film will be released in 3D and IMAX in Hindi, English, Tam...

Common concerns over challenges from China to result in deepening of Indo-US ties: Experts

Common concerns over challenges and threats emanating from China including in the Indo-Pacific region are expected to result in an expansion of overall strategic and defence cooperation between India and the US under Joe Bidens presidency, ...

Give Feedback