S&P lowers Eastman Chemical view to negative

Standard & Poor’s said it affirmed the BBB corporate credit rating on Eastman Chemical Co. and revised the outlook to negative from stable.

The agency also said it affirmed the existing issue ratings at BBB and affirmed the short-term rating at A-2.

The transaction is expected to close by the end of 2014, subject to regulatory approvals, S&P said.

The negative outlook reflects a one-in-three chance that the agency could lower the ratings if the company is unable to sustain a funds-from-operations to adjusted-debt-level above 20% in the next 12 to 18 months, the agency said.

S&P said it believes Taminco’s alkylamines businesses would expand the scope and diversity of Eastman’s specialty chemical operations while supporting good revenue growth and strong profitability.

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