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Investors credit ratings

Credit ratings

A regular assessment by S&P and Moody's

Air Liquide’s credit ratings are based upon its credit worthiness and its ability to repay its debt. The Group is regularly assessed by the credit rating agencies Standard & Poor’s and Moody’s.

Air Liquide’s credit ratings

Agencies Analyst Short-term
rating
Long-term
rating
Outlook
S&P Gaetan Michel A-2
October 11, 2018
A-
October 11, 2018
Stable
October 11, 2018
Moody's Hubert Allemani P2
June 18, 2018
A3
June 18, 2018
Stable
June 18, 2018


Following the announcement of Airgas acquisition, finalized on May 23, 2016, both Credit Rating Agencies downgraded the Group’s Ratings by two notches.

Standard & Poor's

S&P long term credit ratings history:

Rationales behind S&P A- rating are excellent Business Risk as well as adequate Liquidity and a significant Financial Risk. S&P puts a strong focus on Air Liquide‘s earnings resilience and strong cash flow generation when analyzing the company's profitability and financial metrics. S&P views Air Liquide's EBITDA and profit margins as less volatile than that of most rating peers in the chemicals sector.

The stable outlook reflects S&P's expectation that the company will report overall resilient performance and strong free operating cash flow generation that should allow FFO to debt to remain about 25% in 2018 and exceed that level in 2019.

The agency rates corporate issuers as follows:

  • Long-term ratings, in decreasing order: AAA (best), AA, A, BBB, BB, B, CCC, CC, C, D, SD (Selectively Defaulted). The rating is completed by + or -. Companies with ratings above BB+ are considered investment grade and those below non investment grade
  • Short-term ratings, in decreasing order: A-1+ (best), A-1, A-2, A-3, B, C, D

Moody's

Moody’s long term credit ratings history:

Moody’s long term credit ratings history

Moody’s rated Air Liquide’s long-term credit for the first time on May 24, 2016.

Rationales behind Moody’s A3 rating are stable and predictable cash flow generation supported by high barriers to entry, the low exposure to cyclical end-markets, ongoing efficiency gains and the ability to pass on most of increased input costs to Large Industries and Bulk customers through price escalation clauses. This rating reflects also Air Liquide’s revenue and profit resilience thanks to a strong end-market diversification.

The stable outlook reflects that Moody’s expects Air Liquide to continue to reduce its leverage and to generate substantial cash over the next 18 months, particularly with high synergies following the acquisition of Airgas.

The agency rates corporate issuers as follows:

  • Long-term ratings, in decreasing order: Aaa (best), Aa, A, Baa, Ba, B, Caa, Ca, C (Selectively Defaulted). The rating is completed by an 1 (best in the category), 2 or 3. Companies with ratings above Ba1 are considered investment grade and those below non investment grade
  • Short-term ratings, in decreasing order: P-1 (best), P-2, P-3, Not Prime