S&P: Solutia unchanged

Standard & Poor's said its ratings on Solutia Inc. (B+/stable) will not change as a result of the company's recent announcement of a public offering of common shares.

The company plans to use the $277 million of estimated net proceeds to partially repay a $400 million unsecured bridge credit facility, which the agency said it rates B with a recovery rating of 5.

The company also announced it intends to fully repay the bridge facility prior to the end of the February 2009, S&P added, noting that the bridge loans, which automatically extend to 2015, can be converted in February 2009 by the lenders into notes that mature in February 2015.

S&P said it views the lower amount of debt on the company's balance sheet as a positive development for credit quality.

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