Bayer AG continues to struggle with persistent claims against its Roundup weed killer. What's more, on May 28, Moody's issued the company a series of ratings downgrades.
The downgrades included its senior unsecured ratings that fell to Baa2 from Baa1. In addition, its hybrid notes rating sank to Baa3 from Baa1. The outlook, however, moved to stable from negative.
According to Moody’s, Bayer's continued payout of settlement and long-standing litigation formed a reason for the downgrade. Moody's also pointed to the conclusive settlement of glyphosate-related legal cases.
This downgrade occurred after the U.S District Court for the Northern District of California rejected Bayer's plan on Wednesday, May 26. Bayer designed the plan to put an end to future litigation cases and claims...