E.I. DuPont De Nemours&Co.'s Proposed Unsecured Notes Rated 'A-'; On CreditWatch Negative

NEW YORK (S&P Global Ratings) April 26, 2017--S&P Global Ratings said today it assigned its 'A-' issue-level rating to E.I. DuPont de Nemours&Co.'s proposed unsecured notes due 2020 and placed it on CreditWatch with negative implications. We based the rating on preliminary terms and conditions. The company plans to use proceeds to finance a discretionary funding of the company's U.S. pension plan. The company anticipates that the pension funding will result in tax efficiencies. S&P Global Ratings believes the transaction will have a minimal impact on debt leverage. The pension funding will reduce debt-like liabilities to some extent. We anticipate that the resulting reduction of our adjusted debt plus anticipated tax efficiencies will likely offset the proposed increase

...NEW YORK (S&P Global Ratings) April 26, 2017--S&P Global Ratings said today it assigned its 'A-' issue-level rating to E.I. DuPont de Nemours & Co.'s proposed unsecured notes due 2020 and placed it on CreditWatch with negative implications. We based the rating on preliminary terms and conditions. The company plans to use proceeds to finance a discretionary funding of the company's U.S. pension plan. The company anticipates that the pension funding will result in tax efficiencies. S&P Global Ratings believes the transaction will have a minimal impact on debt leverage. The pension funding will reduce debt-like liabilities to some extent. We anticipate that the resulting reduction of our adjusted debt plus anticipated tax efficiencies will likely offset the proposed increase in DuPont's debt. We believe the key ratio of funds from operations to total debt pro forma for the transaction will remain above 30% and appropriate for our assessment of the financial risk profile as intermediate. We...

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