S&P: Octel cut to negative

Standard & Poor's said it revised its outlook on Octel Corp. to negative from stable as a result of the declining market of its main product tetraethyl lead, a lead-based fuel additive, and the challenges faced by the company in seeking replacement activities.

At the same time, the BB long-term corporate credit rating on the group was affirmed.

S&P said the ratings reflect the inevitable shrinking of the TEL market on the back of environmental regulations; the market represented a very high 90.7% of the group's operating profit in 2004.

Moreover, S&P said Octel has found it challenging to replace TEL production with new activities, and the group's other activities remain far less profitable.

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