Increasing specialty chemical focus, reduced cyclicality, and higher and more stable operating margins following the planned acquisition of Solutia Likely to generate substantial discretionary cash flow Moderate financial policies, including a commitment to debt reduction Significant debt leverage following the Solutia acquisition Sizable unfunded postretirement liabilities The ratings reflect Kingsport, Tenn.-based Eastman Chemical Co.'s "strong" business risk profile as a diversified global chemical manufacturer and its "significant" financial risk profile (as our criteria define the terms) following its planned acquisition of Solutia Inc. This compares with our assessment of its business risk profile as "satisfactory" and its financial risk profile as "intermediate" prior to the transaction. On Jan. 27, 2012, Eastman announced that it has agreed to acquire Solutia for
