W R Grace : Fitch Withdraws W.R. Grace & Co.'s IDR Following Acquisition by Standard Industries Holdings

Published: 2021-10-11 04:34:09 ET GRA

Fitch Ratings has downgraded the Long-Term Issuer Default Ratings (IDRs) of W. R. Grace & Co. and W. R. Grace & Co. - Conn. to 'B+' from 'BB+' and removed the Rating Watch Negative.

These actions follow the closing of the company's acquisition by Standard Industries Holdings. Subsequently, Fitch has withdrawn the ratings.

A 'B+' rating level is consistent with the credit profile of the new issuer and filer of financial statements, W. R. Grace Holdings LLC (B+/Stable). Neither of the two subsidiaries at which the IDRs presently sit is the issuer of debt or the filer of statements.

Fitch has withdrawn the ratings of W. R. Grace & Co. and W. R. Grace & Co. - Conn. as they are no longer considered by Fitch to be relevant to the agency's coverage because the entities are no longer issuing debt, and a de minimis amount of debt remains outstanding.

Key Rating Drivers

Key Rating Drivers do not apply as the ratings have been withdrawn.

RATING SENSITIVITIES

Rating Sensitivities do not apply as the ratings have been withdrawn.

Best/Worst Case Rating Scenario

International scale credit ratings of Non-Financial Corporate issuers have a best-case rating upgrade scenario (defined as the 99th percentile of rating transitions, measured in a positive direction) of three notches over a three-year rating horizon; and a worst-case rating downgrade scenario (defined as the 99th percentile of rating transitions, measured in a negative direction) of four notches over three years. The complete span of best- and worst-case scenario credit ratings for all rating categories ranges from 'AAA' to 'D'. Best- and worst-case scenario credit ratings are based on historical performance. For more information about the methodology used to determine sector-specific best- and worst-case scenario credit ratings, visit https://www.fitchratings.com/site/re/10111579.

Issuer Profile

W.R. Grace & Co. is a specialty chemicals company comprised of two business segments: Grace Catalysts Technologies and Grace Materials Technologies. Grace holds a leading position in over 80% of catalyst technologies products and is a worldwide leader in specialty silica gel.

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria.

ESG Considerations

Following the withdrawal of ratings for W. R. Grace & Co. and W. R. Grace & Co. - Conn, Fitch will no longer be providing the associated ESG Relevance Scores for these entities.

Unless otherwise disclosed in this section, the highest level of ESG credit relevance is a score of '3'. This means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. For more information on Fitch's ESG Relevance Scores, visit www.fitchratings.com/esg

VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

PARTICIPATION STATUS

The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.