World's largest producer of acrylamide-based polymers used for water treatment. Good resilience to declining GDP, robust expansion, and solid growth potential. Good geographic, client, and asset diversification. Exposure to volatile costs of propylene, which represents about 90% of the company's raw materials. Exposure to competition and low product diversification. Moderate leverage, with adjusted debt to EBITDA at 2.2x at end 2012. Material capital expenditure to add capacity, leading to anticipated moderate negative free operating cash flow in 2013 and leverage at around 2.5x in our base case scenario. In the past, modest maintenance capital expenditures and dividends. The positive outlook on France-based chemicals producer SPCM S.A. (SNF) reflects Standard&Poor's Ratings Services' view of a potential upgrade if we
