The ratings on France-based SPCM S.A. reflect the group's aggressive leverage and financial policy, exposure to raw material prices, somewhat limited product diversification, and industry competition. These negative factors are partially offset by world market leadership in specialty and intermediate water treatment polymers, strong historical growth, resilience to falling GDP, and continued good demand prospects in the long term. The group generated sales of €1.2 billion in 2008, and EBITDA of €92 million. Standard&Poor's Ratings Services expects the group's EBITDA to remain sensitive to volatile raw material prices (propylene-related), which represent a key cost. We also anticipate that the group's ability to increase prices beyond the offsetting of raw materials could remain somewhat limited by its willingness to
