Fitch downgrades PolyOne ratings

CHICAGO (April 7)—Fitch Ratings has downgraded PolyOne Corp.'s senior unsecured debt rating and senior secured credit facility to B from BB. The ratings also have been placed on Rating Watch Negative. The downgrade reflects significant credit risk associated with liquidity deterioration, pending covenant tightening and termination of PolyOne's accounts receivable securitization program, and refinancing risk, Fitch said. A recent credit rating downgrade triggered the termination clause related to the accounts receivable program, but the clause has been waived through June 30 and PolyOne is in discussions to replace the program with a new facility that would have no debt ratings trigger. The compounder also has about $90 million of 9.375 percent senior notes due in September. It is considering options for refinancing the note and expects to complete refinancing soon, Fitch said. The ratings were placed on Rating Watch Negative pending the resolution of PolyOne's liquidity situation and refinancing.