Our 'BBB' corporate credit rating on Eastman Chemical Co. is derived from: Our anchor of 'bbb', based on our "strong" business risk and "significant" financial risk profile assessments for the company. There are no modifiers. Increasing emphasis on relatively stable, high-margin, specialty chemicals. Strong market positions and pricing power in most segments. Enhanced competitive position through complementary technologies and accelerated access following the Solutia acquisition. Vertical integration and benefit of low-cost feedstocks. Good product, end-market, and geographic diversity of sales, but some manufacturing site concentration associated with the large Kingsport, Tenn., facility. Track record of prudent financial policies. Strong cash flow protection measures. Significant debt reduction in 2013 reduced leverage substantially from higher levels following the Solutia acquisition but funds
