S&P affirms ratings, stable outlook for UK's ICI

01 February 2002 00:17  [Source: ICIS news]

HOUSTON (CNI)--Commercial credit ratings firm Standard & Poor's (S&P) said Thursday it is affirming its BBB rating on corporate credit of the UK's Imperial Chemical Industries' (ICI), saying ICI's plans to raise $1.13bn (Euro1.3bn) in an equity rights issue will reduce the company's net debt position.

New York City-based S&P said: "There is potential for significant additional debt reduction … as a result of ICI's plans to divest Synetix, its mature but very cash-generative catalysts business."

The ratings firm said it expects ICI to be able to reduce its net indebtedness to about $2.8bn by the end of this year from its year-end 2001 debt level of some $4.1bn.

S&P assigned a stable outlook for ICI, saying its position is supported by the group's "strong business profile as a world-leading manufacturer of specialty chemicals and decorative paints."

By: Joe Kamalick
+1 713 525 2653

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