Leading producer of a broad range of industrial and consumer specialty chemicals. Global sales presence and good product and end-market diversification. Expectation of continued gradual profitability improvement in 2018-2019, supported by lower restructuring charges and pass through of raw material price inflation. Sensitivity to industrial and economic conditions and to volatile raw material costs. Forecast adjusted funds from operations (FFO) to debt ratio of 28%-29% in 2018 and 30%-31% in 2019, well in line with the rating. Positive free operating cash flow (FOCF) of CHF200 million-CHF250 million in 2018-2019, sufficient to cover dividends. Comfortable headroom under the current rating. Adequate liquidity. Our stable outlook on Clariant reflects our view that its adjusted EBITDA in 2018-2019 will be CHF940 million-CHF1,000 million
