Our issuer rating on specialty chemicals company Arkema S.A. is derived from: Our anchor of 'bbb', based on our "satisfactory" business risk and "intermediate" financial risk profile assessments for the company. Analytical modifiers having no impact on the rating outcome. Leadership positions in several intermediate and specialty chemicals markets, which contribute a large share of profits. Supportive profitability, given 20% returns on capital, as well as healthy EBITDA levels and margins. Increasing global presence and contribution from high-growth countries. Sensitivity of profits to industry conditions and some demand-sensitive end markets. Capital intensity and long lead time to add capacity. Long track record of conservative financial policies, including a 40% net debt-to-equity limit. Strong credit metrics. "Strong" liquidity. Moderate off-balance-sheet liabilities.
