Fitch affirms Solvay

Fitch Ratings said it affirmed Solvay SA's long-term issuer default rating at BBB with positive outlook.

The agency said the affirmation reflects the company’s improved business profile focused on price-resilient specialty chemicals, which account for over 70% of the company's earnings and cash flows.

The positive outlook takes into account expected further deleveraging, with funds from operation net adjusted leverage forecast below 2.5x from end-2018, Fitch added.

The deleveraging is driven by strong projected EBITDA over the next four years due to higher volumes and cost efficiencies, moderate capex and proceeds from expected completion of the announced disposal of the polyamide business, the agency said.

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