S&P: Lyondell Chemical, Equistar Chemicals off watch

Standard & Poor's said it removed its ratings on Lyondell Chemical Co. and its affiliate Equistar Chemicals LP from CreditWatch with negative implications, where they were placed July 20.

The agency said that the ratings, including the BB- corporate credit ratings, were affirmed, with the exception of $324 million of Lyondell's debentures due 2010 and 2020.

These debenture ratings will remain on CreditWatch with negative implications and are likely to be lowered pending completion of a recovery analysis related to the Lyondell-Citgo Refining LP acquisition financing and confirmation that these issues are currently unsecured, S&P added.

The outlook is stable.

S&P said that the ratings on Lyondell Chemical reflect an aggressive capital structure that resulted from acquisitions and exposure to cyclical markets, which overshadow the company's satisfactory business profile derived from leading positions in several commodity chemical product categories, full ownership of a U.S. Gulf Coast-based heavy crude refinery and policies that support further restoration of the financial profile.

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