Essen, Germany – Moody's Ratings has upgraded Evonik Industries AG's long-term issuer rating to Baa1 (previously: Baa2 with positive outlook). The outlook is stable. At the same time, Moody's raised the ratings of Evonik's outstanding senior unsecured notes to Baa1 and the instrument rating of the company's outstanding hybrid bond 2025/2055 to Baa2.
In its rating action, Moody's highlights Moody's-adjusted gross leverage of Evonik moving sustainably below 2.5x and retained cash flow in relation to net debt in the mid-twenties percent range through the cycle. The agency points to the company's continued cost optimization, a more flexible dividend policy and the ongoing focus of its portfolio on more resilient businesses.
"Our focus on strong cash generation and a conservative capital allocation, including balance sheet strength, is paying off," says Michael Rauch, Chief Financial Officer of Evonik. "This is the result of our disciplined financial policy we have followed consistently. We will stay on this course."
Higher earnings and lower gross debt led to an improvement in Evonik’s credit metrics. Strong cash generation and disciplined capital allocation with an increased financial flexibility were the key drivers behind this development. The company continues to target a cash conversion rate of around 40 percent. On the cost side, the efficiency program “Evonik Tailor Made”, extended in June 2026, is designed to sustainably improve the company's cost structure and long-term competitiveness.
The upgrade brings Moody's issuer rating in line with the BBB+ issuer rating assigned by S&P Global Ratings.