NEW YORK (Standard&Poor's) April 30, 2004-- Standard&Poor's Ratings Services said today that Eastman Chemical Co.'s (BBB/Negative/A-3) announcement that its first-quarter 2004 earnings improved year-over-year (before asset impairments and restructuring charges) does not affect its ratings or outlook on the company. In addition, Eastman anticipates that second-quarter results will improve by 40%-60% compared to first-quarter earnings, excluding asset impairment and restructuring charges for both periods. The company also noted during its first-quarter earnings conference call that good progress was being made in the negotiation of asset sales and that Eastman remains strongly committed to financial polices that support the 'BBB' rating. Notwithstanding, Eastman remains aggressively leveraged for the ratings and there remains very little flexibility for further
