The ratings on France-based chemicals producer SPCM S.A. (SNF) reflect the group's only fair metrics, exposure to raw material prices, somewhat limited product diversification, and potential price pressures from clients or industry competition. These negative factors are partially offset by world market leadership in specialty and intermediate water treatment polymers, strong historical growth, demonstrated resilience to falling GDP, and continued good demand prospects. SNF had sales of €1 billion in 2009 and EBITDA of about €170 million. The adjusted debt reached about €340 million. We classify the business risk profile in the high end of the fair category. We view positively the company's world market leadership in water treatment polymers and rising contribution from higher margin (albeit more volatile) polymers
