S&P cuts Olin to junk

Standard & Poor's said it lowered its corporate credit and senior unsecured debt ratings on Olin Corp. to BB+ from BBB- and removed the ratings from CreditWatch where they were placed May 21.

The outlook is stable.

The downgrade reflects a diminished business profile and increased earnings volatility following the soon-to-be completed acquisition of Pioneer Cos. Inc., according to the agency.

The ratings reflect a below-investment-grade business profile with greater exposure to the volatile commodity chemical cycle, S&P said. The ratings also reflect uncertainty regarding the strength of Olin's earnings during the next several years given the pricing downturn in the chlor-alkali market, the agency said.

These negatives are tempered by the company's good market positions in the chlor-alkali and domestic brass industries, the generation of significant cash flows at the favorable portion of the chlor-alkali cycle and expectation that management's use of debt leverage will remain supportive of the current ratings, the agency said.

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