Axalta Coating Systems' (AXTA) Ba2 corporate family rating and related debt ratings were placed under review for upgrade following its agreement to pursue an all-stock merger of equals with Akzo Nobel, Moody's said Friday in a report.

Moody's said the review will focus on pro forma credit metrics of the combined capital structure and any subordination risk, noting the merged company is expected to have about $17 billion in annual revenue, more than $3 billion in earnings before interest, taxes, depreciation and amortization, including synergies, and roughly $9.4 billion of debt.

Shares of Axalta Coating were up 1.9% in recent Friday trading.

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