The ratings on French chemical producer Arkema S.A. reflect Standard&Poor's Ratings Services' opinion of the group's "satisfactory" business risk profile and "intermediate" financial profile. In our assessment of Arkema's business risk profile, we factor in the group's leading market positions in several niche intermediate and specialty chemical markets, together with substantially increased EBITDA and profit resilience in recent years, in our view, thanks to wide-reaching restructuring, growth endeavors, acquisitions, and divestments. We conservatively assume midcycle EBITDA of about €0.85 billion, a much higher level than a few years ago, and maintenance capital expenditure (capex) at only 20% of that level. Another key strength is Arkema's increasing global presence. The company expects North America to account for 34% of
