S&P rates Huntsman notes CCC+

Standard & Poor's said it assigned its CCC+ rating to Huntsman LLC's proposed $400 million senior unsecured notes due 2012.

S&P also revised its outlooks for Huntsman LLC and its affiliates, HMP Equity Holdings Corp. and Huntsman International Holdings LLC, to stable from negative and affirmed its B corporate credit ratings on the companies. S&P also affirmed its B corporate credit rating on Huntsman Advanced Materials LLC.

S&P said EBITDA margins could reach the attractive high-teens percentage area at the top of cycle peaks, but decline sharply to the mid-single digit area during periods of oversupply.

Huntsman LLC's balance sheet is leveraged, with a ratio of total adjusted debt to capitalization above 100% and total debt to EBITDA near 8.5x. At the current ratings, the key ratios of total debt to EBITDA and EBITDA to interest coverage are expected to approach 5x and 2x over the next few years.

The rating on the company's $275 million priority revolving loan facility due 2006 is BB-.

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