The ratings on France-based chemicals producer 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. In the 12 months ended June 30, 2009, SPCM generated sales of €1.1 billion and EBITDA of about €120 million. Standard&Poor's Ratings Services views SPCM's business risk profile as "fair". We expect 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
