On June 20, 2006, Standard&Poor's Ratings Services assigned its 'BB-' long-term corporate credit rating to France-based SPCM S.A., owner of a group of companies that produces specialty and intermediate water treatment chemicals. The outlook is stable. At the same time, Standard&Poor's assigned its 'BB-' bank loan rating, in line with the corporate credit rating, and a recovery rating of '2' to SPCM's €150 million proposed senior secured bank facilities, indicating the expectation of substantial recovery of principal (80%-100%) in the event of a payment default. SPCM's proposed €140 million senior unsecured notes due 2013 have been rated 'B', two notches below the corporate credit rating. The ratings reflect the group's aggressive leverage following major investments in
