Moody's drops Chemtura

Moody's Investors Service said it lowered Chemtura Corp.'s corporate family rating to B1 from Ba2 and also lowered the company's outstanding debt ratings to B1.

This concludes the review of the ratings that was initiated in Dec. of 2007 following management's announcement that it was considering a wide range of strategic alternatives to enhance shareholder value, the agency said.

According to the agency, the rating action reflects that Chemtura's operational performance has not resulted in credit metric improvement in line with Moody's prior expectations.

The outlook is stable.

The B1 ratings reflect Chemtura's high pro forma leverage, weak credit metrics and ongoing challenges at the non flame retardant plastic additive segment, the agency said, adding that Chemtura's LTM pro forma leverage as of Sept. 30 was 4.3x.

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