Successful and wide-reaching cost improvements. Satisfactory midcycle EBITDA of at least €600 million. Leading market positions and adequate diversification. Conservative financial policy. Strong balance sheet and liquidity. Cyclicality of the chemical industry. Capital intensity and competition. Below-peer presence in high-growth areas. Loss-making PVC activities with uncertain turnaround prospects. The ratings on Arkema S.A. reflect Standard&Poor's Ratings Services' opinion of a "satisfactory" business risk profile, given Arkema's effective, wide-reaching cost improvement and restructuring efforts, and our expectation of favorable future profitability. We also take into account Arkema's "intermediate" financial profile, marked by a conservative financial policy, current low debt providing leeway for midsize acquisitions, and supportive liquidity. Arkema's sales reached €5 billion in the 12 months to June 2010,
