Corporate Credit Rating: BBB+/Negative/A-2 Eastman Chemical Co.'s announcement that it has discontinued discussions with Hercules Inc. regarding the acquisition of Hercules' resins business does not affect Standard&Poor's ratings on Eastman or the negative outlook on the company. Eastman, which announced in September 2000 that it had entered into a letter of intent to acquire most of Hercules' resins business, indicated that the companies have not reached an agreement on the value of the business. The current ratings recognize Eastman's above-average business profile, but the ratings could be lowered if unfavorable business conditions or additional strategic actions impair the firm's ability to achieve meaningful improvement to cash flow protection and leverage statistics.
