Limited sensitivity to GDP declines and good growth potential. World's largest producer of acrylamide-based polymers used for water treatment. Good geographic, client, and asset diversification. Aggressive financial policy, somewhat high leverage, and weak credit metrics. Significant capital expenditures and working capital needs, given growth, limiting free operating cash flow High exposure to volatile propylene costs. Somewhat limited product diversification. The ratings on France-based chemicals producer SPCM S.A. reflect the group's aggressive leverage and financial policy, exposure to raw material prices, somewhat limited product diversification, and industry competition. These negative factors are partially offset by world market leadership in specialty and intermediate water treatment polymers, strong historical growth, resilience to falling GDP, and continued good demand prospects in the long term.
