S&P ups Lucite ratings

Standard & Poor's said it raised its long-term corporate credit rating on Lucite International Group Holdings Ltd., the largest global producer of acrylics, to BB from BB-.

The outlook is stable.

"The rating action reflects Lucite's strong operating performance in 2003, and the subsequent significant improvement in the group's financial profile," said S&P credit analyst Christine Hoarau, "as well as our expectation that this improved financial profile will be maintained."

Owing to the favorable supply/demand balance for methyl methacrylate and supported by growth from new applications, Lucite's EBITDA surged by nearly 60% in 2003, to £113 million. As a result, the group's credit ratios improved dramatically: Funds from operations-to-net debt stood at more than 20% at year-end, a level in line with the rating category, versus about 12% in 2002, a very weak level for the rating category.

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