S&P rates Chemtura, notes BB- and loan BB+

Standard & Poor's said it assigned Chemtura Corp. a BB- corporate credit rating, following the company's emergence from Chapter 11 bankruptcy protection.

S&P said it also assigned the company's $295 million senior secured term loan a BB+ issue-level rating with a 1 recovery rating, indicating the expectation of very high (90%-100%) recovery in the event of a payment default.

S&P said it rated Chemtura's $455 million of unsecured senior notes also BB- with a 3 recovery rating, indicating the expectation of meaningful (50% to 70%) recovery in the event of a payment default.

The outlook is stable.

The ratings reflect Chemtura's position as a leading global producer of industrial and specialty chemicals serving various end markets, aggressive financial risk profile and adequate liquidity position, S&P said.

The ratings consider the vulnerability of the company's operating results to cyclical markets and competitive pricing pressures, and the need to increase research and development-related spending and growth-related initiatives to bolster the company's product pipeline over the next few years, the agency said.

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