The ratings on France-based chemicals producer SPCM S.A. (SNF) reflect Standard&Poor's Ratings Services' view of the group's ongoing leverage, a focus on growth resulting in material capital intensity to set up new capacities and for working capital, some exposure to raw material prices, somewhat limited product diversification, and potential price pressures from clients or 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 reported sales of €1.4 billion in the 12 months to Sept. 30, 2010, and EBITDA of about €170 million. Our adjusted debt for SNF reached about €450 million on Sept. 30, 2010.
