The ratings incorporate Kingsport, Tenn.-based Eastman Chemical Co.'s satisfactory business profile, reflecting good market and cost positions in most of its chemicals, plastics, and fibers businesses, and management policies that support the 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, as well as increasing global supply and soft recent company sales volumes in PET and, to a lesser extent, certain other products, operating profitability and funds from operations continue to be
