S&P lowers US Chemtura ratings on maturing notes

05 November 2008 23:29  [Source: ICIS news]

HOUSTON (ICIS news)--Standard & Poor's Ratings Services (S&P) lowered on Wednesday the credit and debt ratings of US producer Chemtura, due to the upcoming maturity of the company's $370m (€285m) unsecured notes.

The new rating is BB-, down from BB, S&P said. The outlook is negative.

The notes are due in July 2009, S&P said. If possible, Chemtura plans to refinance the notes with new debt securities or redeem them by selling assets.

If financial markets remain tight, Chemtura could refinance the notes through a revolving credit facility, S&P said. That would give Chemtura more time to sell off assets.

However, such a move would significantly reduce the company's liquidity, S&P said. At the same time, demand is falling for some of the company's products, putting more pressure on liquidity.

To increase liquidity, the company has started a five-point programme. In another plus for the company, Chemtura's portfolio is diverse, covering specialty and industrial chemical businesses, S&P said.

Restructuring, divestitures and other actions has also helped the company, S&P said.

Chemtura shares traded at $1.65 on the New York Stock Exchange, down 2.94%.

($1 = €0.77)

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By: Al Greenwood
+1 713 525 2653

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