S&P drops Sensient

Standard & Poor's said it lowered its corporate credit and senior unsecured ratings on Sensient Technologies Corp. to BB+ from BBB-.

The outlook is stable.

S&P said the action is based on Sensient's challenging operating conditions, increasing raw material prices and limited pricing flexibility, which has resulted in credit measures below S&P's expectation for the maintenance of an investment-grade rating.

The ratings on Sensient reflect the company's inconsistent operating performance and moderately high debt leverage after a large number of debt-financed acquisitions, the agency noted, adding these factors are offset somewhat by its position as a leading industrial marketer of value-added flavors, fragrances and colors.

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