PolyOne debt downgraded by Moody's

NEW YORK (March 5)—Moody's Investors Service downgraded the senior unsecured debt of thermoplastics and rubber compounder PolyOne Corp. to Ba3 from Baa3. The downgrade reflects the research analysis firm's concerns over PolyOne's weak financial profile and further weakness in the U.S. industrial economy in 2003; $90 million of debt maturities in September 2003; pending renegotiation of financial covenants in its credit agreement; and the negative impact of higher oil and gas prices on the company's margins, Moody's said. The company's ratings remain under review for possible downgrade, and Moody's also assigned PolyOne a Ba2 senior implied rating and a Ba3 issuer rating.