02 February 2010 23:17 [Source: ICIS news]
HOUSTON (ICIS news)--Standard & Poor’s (S&P) upgraded the outlook on Dow Chemical to stable from negative as the US producer’s operating and cash flow performance has improved, the ratings service said on Tuesday.
The upgrade came after Dow’s fourth-quarter earnings release early Tuesday, in which the company swung to a profit of $87m (€63m) from the $1.55bn loss reported a year ago on volume gains across almost all operating segments and stronger equity earnings.
“We expect operating results to continue to improve as economic conditions recover, which is likely to support further strengthening of the financial profile over the next one to two years,” S&P said.
The stable outlook takes into account Dow’s initiatives to solidify its financial profile, including aggressive cost reductions, the completion of 43.4bn in asset sales, and long-term debt financings through which Dow has fully repaid the bridge financing associated with its Rohm and Haas acquisition, S&P said.
The Rohm and Haas deal initially gave Dow a significant financial risk profile, S&P said.
S&P also affirmed its ‘BBB-‘ corporate credit rating on Dow and its subsidiaries, Rohm and Haas and Union Carbide.
Dow closed down $1.06, or 3.7%, to $27.57/share in Tuesday trading on the New York Stock Exchange.
($1 = €0.72)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections