S&P lowers Chemtura

Standard & Poor's said it lowered the corporate credit and senior unsecured debt ratings on Chemtura Corp. to B from BB- and placed ratings on CreditWatch with negative implications. The recovery rating on the company's senior unsecured notes is unchanged at 4.

The downgrade reflects the increasingly challenging operating environment and declining volume in the fourth quarter related to Chemtura's polymer additives and performance specialties business segments, the agency said.

"The operating weakness is fairly widespread across the industry, but the downgrade and CreditWatch listing reflects our concern over the possibility of a near-term violation of Chemtura's total leverage covenant under its credit agreement and the upcoming debt maturity of the $370 million of 7% notes in July 2009," S&P analyst Liley Mehta said in a statement.

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