S&P lowers Lucite outlook due to acrylics costs

11 September 2007 17:48  [Source: ICIS news]

LONDON (ICIS news)--Standard & Poors (S&P) has changed its outlook on UK-based acrylics producer Lucite to negative from stable due to higher costs in its markets, the rating agency said on Tuesday.

 

“The outlook revision reflects S&P’s concerns over Lucite’s ability to pass on rising raw material and energy costs to customers in an increasingly challenging market environment,” said S&P credit analyst Sophia Dedemadis.

 

S&P added that Lucite’s ratings could come under pressure if it undertakes additional shareholder-oriented measures or mid-to-large debt-funded acquisitions.

 

“The outlook could be revised back to stable if the company is able to demonstrate sustainable improvement in operating performance, specifically management of input costs,” added S&P.

By: Mark Watts
+44 20 8652 3214

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