S&P applies BBB to Eastman loans

Standard & Poor's said it assigned its BBB senior unsecured debt rating to Eastman Chemical Co.'s proposed $1 billion of senior unsecured term loan and $1.25 billion senior unsecured revolving credit facility, both due in 2019.

All other ratings on Eastman, including the BBB corporate credit and A-2 commercial paper ratings, remain unchanged.

The outlook is negative.

Proceeds are expect to be used to fund a part of the Taminco acquisition that was announced on Sept. 11. At the same time, the company is renewing its revolving credit facility for general corporate purposes.

S&P said the ratings reflect Eastman’s strong business risk profile as a diversified global chemicals company with trailing-12-month sales of $9.37 billion, and a significant financial risk profile.

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