CHICAGO (Feb. 28)—Fitch Ratings has lowered Solutia Inc.´s senior secured debt rating to "BB+" from "BBB" and the senior unsecured debt rating to "BB" from "BBB-." In addition, the rating for Solutia's short-term rating was downgraded to "B" from "F3" and Fitch placed the specialty chemical firm on Rating Watch Negative, which reflects concerns about Solutia's ability to refinance about half of its $1.31 billion debt. Fitch said the downgrade was based in part on heightened refinancing risk associated with $150 million in debt due this October and an $800 million credit facility up for renewal in August. Ongoing litigation regarding polychlorinated biphenyl contamination contributed to the two-notch downgrade, Fitch said, because it creates an unfavorable environment in which Solutia must refinance its maturing debt.
Fitch lowers Solutia's debt rating
Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].