On Sept. 10, 2008, Standard&Poor's Ratings Services revised its outlook on France-based specialty chemical producer SPCM S.A. to negative from stable, reflecting SPCM's aggressive growth and weakening leverage ratios and liquidity. At the same time, we affirmed the 'BB-' long-term corporate credit rating on the company. The outlook revision reflects our concerns regarding the group's rapid and aggressive growth, and associated pressures on financials and liquidity. This growth is based on substantial expansion capital expenditure and a focus on volumes rather than prices to gain market shares. Combined with adverse raw material prices, second-quarter results showed materially weakened credit metrics and profitability. Furthermore, the covenant on end-2008 leverage (net debt to EBITDA) may be very tight. The ratings
