Moody's Ses Potential Dow Chemical (DOW) Split as Credit-Negative Event

Moody's views the proposal by Third Point Capital, who has reportedly taken a roughly 2.5% equity stake in The Dow Chemical Company (NYSE: DOW), as being a credit negative. However, Moody's does not believe that Dow will implement this proposal and instead will accelerate its planned cost reductions and divestitures, and undertake incremental increases to shareholder remuneration. Moderate increases to shareholder remuneration would not have a negative impact on Dow's rating or outlook.

For further information, please see the issuer comment for The Dow Chemical Company on www.moodys.com.

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