We anticipate that Switzerland-based specialty chemicals company Clariant AG will continue to report resilient operating results in 2016, as it did in 2015, despite a more challenging macroeconomic environment ahead. We foresee more substantial growth only in 2017. We also assume that its funds from operations (FFO)-to-debt ratio will further improve to about 30% in 2016, up from 27% in 2015. We are therefore affirming our 'BBB-' long term corporate credit rating on Clariant. The negative outlook reflects the possibility that we may lower the rating on Clariant to 'BB+' over the next 12 months if we believe its FFO-to-debt ratio has not improved to about 30% on a sustainable basis, or absent more recurring positive free operating cash flow
