The ratings on Salt Lake City-based Huntsman Corp. and Huntsman International LLC reflect the company's aggressive financial profile, and its satisfactory business profile. Concerns at the rating include prospects for continued high debt levels, despite improvements to leverage statistics. Our expectation is that the company will maintain the key ratio of FFO to total adjusted debt in the 12% to 15% range. As of Sept. 30, 2010, the ratio was at 14%. We adjust debt to include tax-adjusted underfunded postretirement employee benefits, capitalized operating leases, and accounts-receivables securitization. A manageable debt maturity profile and adequate liquidity partly offset our concerns on the company's aggressive financial profile. The debt maturity profile improved following the company's buyback of about $250 million of...
Companies mentioned in this report are:
- Huntsman Corp.
- Huntsman International LLC
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