S&P puts Ashland on watch

Standard & Poor's said that it placed the BB+ corporate credit rating, BBB senior secured debt rating and BB- subordinated debt rating on Ashland Inc. on CreditWatch with negative implications.

S&P placed the BB senior unsecured debt rating on Ashland's $650 million of notes due 2017 on CreditWatch with developing implications.

The CreditWatch placement reflects the likelihood that S&P will lower most of the ratings on Ashland and its debt issues following its acquisition of International Specialty Products Inc. because of the resulting increase in debt leverage, the agency said.

The acquisition furthers Ashland's strategy of expanding its specialty chemical offerings, improving profitability and increasing the predictability of operating results, the agency added.

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