World's largest producer of acrylamide-based synthetic polymers used for water treatment Low-cost production of acrylamide by enzymatic process Good geographic diversification by sales and production Significant leverage and low capital returns Significant capital expenditures for growth limiting free operating cash flow Low diversification for a chemical company High exposure to volatile propylene costs The ratings on France-based chemicals company SPCM S.A. reflect the group's aggressive leverage, limited product diversification, and industry competition. These negative factors are partially offset by main unit SNF's world market leadership in specialty and intermediate water treatment polymers, adequate liquidity, and growth prospects. Sales for the year ended March 31, 2007, reached about €900 million with EBITDA of €100 million, resulting in an 11% EBITDA margin.
