European Chemicals: The Chemicals Catalyst: May 2026

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European Chemicals: The Chemicals Catalyst: May 2026

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European Chemicals

The Chemicals Catalyst: May 2026

Rating Change - Credit

Upcoming events, catalysts 09 June 2026

June is dominated by macro events/catalysts. The month should see Bayer’s class action High Grade Credit

settlement results (in a couple of weeks) post the opt-out deadline (4th June), an ECB Europe

rates decision this week and a string of industry conferences through the month (see Chemicals

calendar: Exhibit 57). William Dennis

Research Analyst

Recommendation changes: OW Evonik hybrids, Azelis €29s MLI+44 (UK)20 7996 1251

We recommend an OW in the Evonik NC’31s hybrids on attractive sub-senior spreads, william.dennis@bofa.com

dividend cut and ratings upside, while adding the senior €30s at MW. We move the Stephanie Vincent, CFA

AKEFP €29s, €31s, and €34s to UW (from OW) on likely near-term negative ratings ResearchMLI (UK) Analyst

catalyst given expected flattish operating performance in 2026 and continued weak end +44 20 7996 1143

stephanie.a.vincent@bofa.com

markets demand. We have a MW on the AKEFP €30s and €33s. For Syensqo, we add

coverage of €31s, €35s at MW on continued weakness in metrics offset by already wide

spreads. In HY, we move the Azelis €29s to OW from MW while adding coverage of the Exhibit 1: Add Evonik NC’31s at OW.

€31s at MW. We add financial models across our coverage including Ineos Quattro. Move Azelis €29s to OW.

Rating agency actions: mainly negative actions YTD Recommendation changes

Bond/CDS Old New2026 has seen significant negative ratings actions across all three ratings agencies in

EVKGR 4.25% NC €'31 - OWthe European chemicals space. In IG, Moody’s changed Arkema’s outlook to negative on EVKGR 3.25% €'30 - MW