French chemicals producer Arkema has smoothly integrated Bostik, and we expect a recovery in the company's credit metrics in 2016. Arkema is making progress on its strategic objectives for organic growth and merger and acquisitions, with the company's ratio of adjusted funds from operations to debt likely to recover to about 35% in 2016. We are affirming our 'BBB/A-2' ratings on Arkema. The negative outlook reflects risks to our base-case scenario for Arkema in 2016, including the €200 million option to acquire a further share in the China-based acrylics monomer Sunke joint venture in China. On Nov. 30, 2015, Standard&Poor's Ratings Services affirmed its 'BBB' long-term and 'A-2' short-term corporate credit ratings on France-based chemical producer Arkema S.A.
