S&P assigns Millennium America loan BB

Standard & Poor's said it assigned its BB rating and a recovery rating of 1 to Millennium America Inc.'s and Millennium Inorganic Chemicals Ltd.'s proposed $250 million senior credit facilities, consisting of a $100 million term loan facility and a $150 million revolving credit facility, both due 2010.

S&P said it also affirmed its ratings on Millennium Chemicals (BB-/positive) and Millennium America. The outlook is positive.

The ratings reflect Millennium Chemicals' business position as a well-established producer of commodity chemicals, the credit strength of its larger parent, Lyondell Chemical Co. and the risks associated with an aggressive capital structure and operating results that vary widely over the course of the business cycle, the agency noted.

These risks are mitigated somewhat by financial policies that emphasize debt reduction as business conditions improve and the preservation of sufficient liquidity at all points in the business cycle, S&P added.

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