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 vertical 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 economic downturns; Sizable off-balance-sheet liabilities including underfunded pension and postretirement benefit obligations; and Risks associated with large planned projects. The ratings incorporate Kingsport, Tenn.-based Eastman Chemical Co.'s satisfactory business profile, reflecting good market and cost positions in most of its chemicals, plastics, and fibers businesses, and management policies that support the expected maintenance of a
