Eastman Chemical Co.'s (BBB/Stable/A-2) announcement that it has discontinued efforts to spin off its specialty chemicals and plastics businesses does not affect Standard&Poor's ratings or outlook on the company. The transaction, which was postponed during November 2001, was expected to separate the company's specialty chemical businesses from the more commodity-like PET, polyethylene, and acetate fibers segment. Today's announcement, while significant from a prospective business mix and strategy standpoint, is not expected to materially affect credit quality given the company's current financial profile. The ratings already incorporate the above-average business profile of the business in its present form, reflecting solid market and cost positions in most of its chemicals, plastics, and fibers businesses. Management, however, is expected to remain
