NOVA CHEMICALS - antizyklischer Kauf

http://www.finanznachrichten.de/...emicals-debt-may-cut-again-020.htm

04.02.2009 22:22
Moody's cuts Nova Chemicals debt, may cut again

NEW YORK, Feb 4 (Reuters) - Moody's (News) Investors Service on Wednesday cut its ratings on Nova Chemicals Co (News) deeper into junk territory and said it may cut them further depending on the raw plastic maker's ability to raise new capital.

Moody's cut the company two notches to 'B2,' five steps below investment grade.

The review for further downgrade 'will focus on Nova's ability to raise additional capital and the likely timing for these infusions,' Moody's said in a statement.

The company also recently amended its bank credit facility and will get relief on terms in the agreement if it can raise an additional $100 million in financing by February 28, 2009, Moody's said.

Nova also needs to raise an additional $100 million in capital by June 1, 2009 to remain in compliance with the new facility.

Nova's shares surged more than 39 percent on Wednesday on speculation it has secured $100 million in new financing. The company declined to comment, but said it is 'be confident in our ability to work with our lenders going forward.' For details, see

The company also has a series of debt maturities coming due over the next 18 months, starting with a $250 million bond repayment in April.