Solutia Credit Rating Gets Big Improvement

New York, NY, March 3, 2008--Solutia Inc., which emerged from bankruptcy Friday, got more good news from Standard & Poor's Ratings Services, which raised its corporate credit rating on the company to 'B+' from 'D'.

S&P said the outlook is stable.

The agency also affirmed its 'B+' rating on Solutia's proposed senior secured term loan. In addition, it assigned its 'B-' rating to Solutia's $400 million unsecured bridge loan facility.

The bridge facility initially existed as a contingency measure.

Solutia used proceeds from the debt facilities and a $250 million rights issue to pay certain creditors.

S&P noted that the ratings take into account Solutia's leveraged financial profile and a business mix that includes a large commodity-oriented nylon segment that is somewhat vulnerable to economic and cyclical downturns and volatility in raw material, transportation, and energy costs.