Switzerland-based specialty chemicals company Clariant's free operating cash flow in 2014 was below our expectations. In combination with a significant increase in its pension deficit, this has led to higher adjusted debt and weaker credit metrics than we previously anticipated. We expect improvements in free operating cash flow in 2015, but the extent remains uncertain. We are therefore revising our outlook on Clariant to negative from stable and affirming our 'BBB-/A-3' ratings on the company. The negative outlook reflects a one in three chance that we will lower the rating on Clariant to 'BB+' over the next 12 to 18 months, if the company fails to improve its ratio of adjusted funds from operations to debt to about 30% or
