US S&P may lower ratings of Invista

18 August 2008 22:39  [Source: ICIS news]

HOUSTON (ICIS news)--Standard & Poor's Ratings Services (S&P) could lower the ratings of Invista due to rising raw-material costs and a weakening demand from its key markets, the US ratings firm said on Monday.

Invista makes nylon, polyester and other fibres, many of which are used in automobile airbags and in nylon carpeting, S&P said.

The company's key markets in housing, automobiles and beverage packaging have all weakened, S&P said. Already, Invista's operating results have weakened as a result.

Invista could even violate the covenants of its primary bank credit facility within the next couple of quarters, S&P said. However, the company is pursuing alternative capital sources which could provide relief from the pressures of its covenants.

As of 30 June, Invista had nearly $500m (€340m) of liquidity, including more than $300m in cash, S&P said. Total outstanding debt was about $2.8bn.

($1 = €0.68)

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