S&P rates BorsodChem BB

Standard & Poor's said it assigned its BB long-term corporate credit rating to Hungary-based chemicals group BorsodChem Rt., reflecting the group's position in various segments of the Central and Eastern European chemicals market.

The outlook is stable.

"The rating is constrained by BorsodChem's limited scale in each of its competing markets, its exposure to the cyclical construction industry, and to the very cyclical PVC and caustic soda markets," said S&P credit analyst Christine Hoarau.

These negative rating factors are partially offset by the group's leading positions in the polyvinyl chloride (PVC), toluene di-isocyanate (TDI), and methylene di-para-phenylene isocyanate (MDI) markets in the Central and Eastern European markets, its good profitability and presence in the growing TDI and MDI markets, and its solid financial profile.

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