Solutia“s long-term ratings lowered – outlook “negative“

On 1 March Standard & Poor“s lowered its long-term corporate credit, senior unsecured and bank loan ratings on Solutia to BBB-from BBB on what it called “the decline in the chemical company“s financ…

On 1 March Standard & Poor“s lowered its long-term corporate credit, senior unsecured and bank loan ratings on Solutia to BBB-from BBB on what it called “the decline in the chemical company“s financial profile.” The ratings agency called Solutia“s outlook “negative.” However, S&P also affirmed Solutia“s A-3 short-term corporate credit and commercial paper ratings. “The rating action reflects Solutia“s continued poor operating performance, subpar financial condition, and the likelihood that needed improvement to the financial profile could take longer than anticipated,” said S&P credit analyst Peter Kelly. “Ratings could be lowered if an expected improvement in the economy fails to materialize, or if the company“s efforts to reduce debt and restore adequate cash flow protection are further delayed.”