Moody's says Chemtura downgrade possible

19 December 2007 19:23  [Source: ICIS news]

HOUSTON (ICIS news)--Moody's Investors Service on Wednesday placed the ratings of Chemtura under review for possible downgrade after the company announced a potential restructuring.

“While this process may not be resolved within the next three months, Moody's review will examine the company's ratings given the lack of improvement in financial metrics over the past year, the potential impact of a slowdown in the US economy in 2008, potential further weakness in the company's Non-Flame Retardant Polymer Additives businesses, and the likelihood of additional restructuring charges,” Moody’s said in a ratings advisory.

On Tuesday, Chemtura announced its board of directors had authorised management to consider a range of strategic alternatives to enhance shareholder value.

Moody's review will focus on the company's expected financial metrics in 2008 as well as any indications from management on the size or scope of the actions they may consider as part of the strategic review, the rating agency said.

Moody’s gives Chemtura a corporate family rating (CFR) of Ba2.

By: John Waggoner
+1 713 525 2653

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