The ratings incorporate Kingsport, Tenn.-based Eastman Chemical Co.'s satisfactory business profile, reflecting solid market and cost positions in most of its chemicals, plastics, and fibers businesses, and management policies that support the recent achievement and expected maintenance of a moderate financial profile. The company's business profile reflects broad diversification across some differentiated product categories, although operating prospects are still heavily dependent on Eastman's leading positions in the more commodity-like polyethylene terephthalate (PET) and acetate fibers businesses, which together account for just under half of total sales. Despite raw-material and energy cost pressures, operating profitability and funds from operations have trended upward during the past several quarters. Key factors contributing to this improvement include: higher selling prices; completion of restructuring, divestiture,
