Leading producer of a broad range of specialty chemicals. Global sales presence and good product and end-market diversification. Chemical activities' sensitivity to industrial and economic conditions and volatile raw material costs. Reduced cyclicality of Süd-Chemie's divisions and the disposal of underperforming divisions. Expectation of continued profitability improvement over the next few years. Expectation of improving FFO/debt to 30% by 2016, which we view as commensurate with the rating. Declining restructuring outlays in 2015 and anticipated improvement in the company's free operating cash flow (FOCF) in 2015 and 2016. "Strong" liquidity. Standard&Poor's Ratings Services' negative outlook on Switzerland-based specialty chemicals producer Clariant AG reflects the possibility that we may lower Clariant's rating to 'BB+' over the next 12-18 months.
