Fitch lifts Solvay to stable, rates Cytec notes BBB

Fitch Ratings said it revised Solvay SA's outlook to stable from negative and affirmed its long-term issuer default rating at BBB.

Fitch also said it assigned BBB senior unsecured ratings to Cytec Industries Inc.'s $400 million, $250 million and $82 million notes, which are guaranteed by Solvay.

The agency also said it affirmed Solvay's outstanding senior unsecured issue ratings at BBB and subordinated issue ratings at BB+.

The stable outlook reflects improved visibility on Solvay's de-leveraging efforts with its net adjusted leverage moving back toward 2.5x by 2018 from its 4.2x peak at year-end 2015, Fitch said.

The company also experienced sustainably higher profitability across all segments, the agency said.

Solvay's efforts to increase its specialty chemicals share of its portfolio culminated in the Cytec acquisition in the fourth quarter of 2015, leading price-resilient specialty chemicals to account for more than 60% of the company's revenues and cash flows, Fitch said.

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