The rating still reflects the company’s strong position in medium-sized markets with considerable barriers to entry, together with its conservative financial policy.

The rating still reflects the company’s strong position in medium-sized markets with considerable barriers to entry, together with its conservative financial policy.

The rating still reflects the company’s strong position in medium-sized markets with considerable barriers to entry, together with its conservative financial policy, balancing share-and debt-holder interests.

LANXESS has agreed to sell its stake in ARLANXEO to Saudi Aramco. The result is a significantly stronger financial risk profile due to lower leverage, supported by a conservative financial policy, favouring shareholder and debtholders.

A protected industry position, strong niche market positions, and conservative financial policy are credit-positive; weaker profitability and free cash flow than sector levels, and medium industry cyclicality of specialty chemicals industry are limits.