Thursday, April 23, 2009

Dow's credit rating nearly "junk" but fishing tournament in Michigan is a go

We've noticed Dow Chemical Co., which pumps the life source into the economy of this place known as Brazosport, has enjoyed a slight recovery in its stock price during the recent sucker's rally on Wall Street.

But today comes news that causes heartburn in the inner workings of Andrew Liveris, Dow's Big Cheese.

The company's credit rating has slipped one notch away from the dreaded "junk status."

As reported by the AP via Forbes:

The ratings agency lowered its senior unsecured rating on the Midland, Michigan-based company to "Baa3" - still an investment-grade rating - from "Baa1" with a negative outlook, meaning an additional downgrade is possible.

If Dow's credit rating is pushed into junk status, it could sharply increase borrowing costs and squeeze operations just as demand for chemicals sits at decade lows.

The downgrade "reflects the substantial increase in leverage as a result of the Rohm and Haas acquisition, and the significant integration risk associated with such a large transaction," Moody's said in a statement.

That is all.

Oh, one more thing.

The Dow-sponsored "Walleye Fest" fishing tournament in Michigan is on!

What could be better than taking a youngster into the great outdoors to catching fish from a dioxin-laced river?

Maybe one thing -- giving the fish to the poor!!

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