By Patrick Raleigh UT On-line/news editorFrankfurt, Germany-Standard & Poor’s Ratings Services has issued Hungary-based chemicals group BorsodChem Rt with a ‘BB’ long-term corporate credit rating with a stable outlook. The rating reflects BorsodChem’s “limited scale in each of its competing markets, its exposure to the cyclical construction industry, and to the very cyclical PVC and caustic soda markets,” said Standard & Poor’s credit analyst Christine Hoarau. Against this, the group holds leading positions in the TDI (toluene diisocyanate), MDI (methylene diphenyl diisocyanate) and PVC markets in central and eastern Europe, Hoarau added in a 23 April statement.The S&P analyst went to highlight BorsodChem’s “good profitability and presence in the growing TDI and MDI markets, and its solid financial profile.”The stable outlook reflects that the group is expected to maintain a solid financial structure, despite the heavy investments planned over the next two years,” commented Hoarau. The group’s net debt-to-capital ratio should peak at about 30 percent in 2005, which remains strong for the rating, she noted.With sales of about Euro530 million in 2003, BorsodChem is the largest producer of PVC, the sole producer of MDI, and the leading producer of TDI in central and eastern Europe. “
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