S&P gives Lyondell notes B+

Standard & Poor's said it assigned its B+ rating to Lyondell Chemical Co.'s proposed $500 million of unsecured notes due 2017.

The proceeds from the proposed notes offering, together with cash on hand, will be used to refinance the existing $500 million of 10 7/8% senior subordinated notes, which mature May 1, 2009, the agency said, adding that it views this financing as a favorable step to extend the debt maturity profile and fully consistent with Lyondell's objective to improve its overall financial profile during the current business cycle.

S&P said it affirmed its corporate credit rating on Lyondell (BB-/stable/B-1).

The outlook is stable.

The agency noted that the ratings on Lyondell Chemical reflect an aggressive capital structure and exposure to cyclical markets, which overshadow the company's satisfactory business profile derived from leading positions in several commodity petrochemical categories, full ownership of a U.S. Gulf Coast-based heavy crude refinery and policies that support further restoration of the financial profile.

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