S&P says Huntsman outlook 'positive' after restructuring
10 October 2002 14:32 [Source: ICIS news]
HOUSTON (CNI)--Credit ratings agency Standard & Poor's (S&P) said Thursday the outlook for Huntsman Company LLC (formerly Huntsman Corporation) is positive following the company's restructuring that included taking on a new partner.
New York City-based S&P assigned its "B+" rating to Huntsman and its $1.4bn (Euro1.402bn) secured credit facilities.
S&P also rated the chemical company's $275m revolving loan facility "BB," two notches above the corporate credit rating, "to reflect the strength of the collateral package supporting these obligations."
S&P's credit analyst Kyle Loughlin noted the Huntsman restructuring reduced debt by $775m.
He added: "This closes a difficult chapter that began with the lapse of interest payments during December 2001 and substantially improves Huntsman's financial position. The restructured financial profile will also benefit from an extended debt maturity profile and access to the new revolving credit facility."
S&P said privately held Huntsman's business mix is bolstered by strong positions in a number of intermediate products, good shares in the more attractive niches in the polymers segment and contributions from surfactants.
Loughlin said the positive outlook recognizes that Huntsman could achieve improvement to the financial profile when the chemical industry recovers as expected.
He added: "However, any upside would have to be supported by a modest approach to growth-related spending that allows for sustained improvement to the financial profile."
By: Mike Sheridan
+1 713 525 2653
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