We think French chemicals producer SPCM S.A.'s (SNF) quarterly EBITDA could stay close to its strong first-half 2012 level given its positioning on defensive and growing end-markets, and its limited exposure to Europe. Consequently, we believe our ratio of adjusted funds from operations to debt for SNF could remain at 25%-30% in 2012 and beyond. We are revising the outlook to positive from stable and affirming the 'BB' long-term rating on SNF. We are also assigning our 'BB' issue rating to the company's proposed senior unsecured notes, with a recovery rating of '4'. The positive outlook reflects the potential for an upgrade within 12 months if EBITDA reaches about €250 million in 2012, we believe it will stay above €230
