On June 12, 2003, Standard&Poor's Ratings Services assigned its 'BBB' rating to chemicals producer Eastman Chemical Co.'s $250 million senior unsecured notes due 2008. Standard&Poor's also affirmed its existing ratings on the Kingsport, Tenn.-based company. Proceeds will be used to repay commercial paper and other short-term borrowings. Despite difficult business conditions and a still-subpar financial profile relative to expectations at the current ratings, credit quality is supported by management's focus on improving cash flow protection measures, the potential for meaningful debt reduction with asset sale proceeds, and the expectation for a gradual trend of improvement to overall operating results. The ratings incorporate Eastman Chemical's above-average business profile, reflecting solid market and cost positions in most of
