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 supportive of a moderate financial profile. Eastman's business profile reflects broad diversification across some differentiated product categories, although operating prospects still depend heavily on the company's leading positions in the more commodity-like polyethylene terephthalate (PET) and acetate fibers businesses. The company generates nearly half of its approximately $7 billion of annual sales from outside the U.S., but this proportion will decline somewhat with the divestiture of non-U.S. PET assets. Eastman's specialty chemicals include coatings, additives, and solvents used in paints; materials used to make adhesives; engineering and specialty polymers used in
