Broad diversification across differentiated product categories, and leading positions in more commodity-like PET and acetate fibers businesses; Competitive cost positions due to scale of operations, significant focus on operating efficiency, leading technology, and a considerable level of integration; Use of coal and wood pulp-based feedstocks which reduces reliance on petrochemicals; and Moderate financial policies. Some vulnerability to commodity cycles, raw-material price volatility, and an economic downturn; and Sizable off-balance-sheet liabilities including underfunded pension and postretirement benefit obligations. The ratings incorporate Kingsport, Tenn.-based Eastman Chemical Co.'s satisfactory business profile, reflecting solid market and cost positions in most of its chemicals, plastics, and fibers businesses, and management policies that support the recent achievement and expected maintenance of a moderate financial profile. The
