Fitch affirms Dow Chemical's ratings

CHICAGO (July 1)—Fitch Ratings has affirmed Dow Chemical Co.'s ratings, but said the firm's rating outlook remains negative. Dow Chemical's senior unsecured rating remains "A," and its short-term unsecured rating is "F1." In addition, Fitch assigned Dow subsidiary Union Carbide Corp. a long-term senior unsecured rating of "A." The negative outlook for Dow and Union Carbide reflects high debt levels and the likelihood these levels will remain elevated for a period of years based on Fitch's free cash flow outlook. Although asbestos claims continue to grow, Fitch said it believes Dow's strategy of handling the claims will result in minimal net cash outflows in the near and medium terms.