Credit ratings agency. (Financial in Briefs).(Moody's Investors Service downgrades Dow Chemical Co., Union Carbide)(Brief Article)

Chemical Market Reporter, April, 2002

Credit ratings agency Moody's Investors Service has downgraded the senior debt rating of Dow Chemical Company from "A1" to "A3." Moody's also downgraded Dow's wholly owned subsidiary Union Carbide's long-term debt rating from "A2" to "Baa2" and its short-term debt rating from "Prime-1 to "Prime-2." Issues factoring into the downgrades include both companies' depressed financial performance and heightened financial leverage, the limited prospects for an economic recovery in 2002, and the potential for adverse credit implications due to litigation and other event risk factors.

The ratings of Union Carbide also consider that Dow does not guarantee its debt, and that it is reliant on Dow for financial liquidity.