Chicago, IL, Aug. 22--Fitch Ratings maintains the Rating Watch Negative status on Solutia Inc.'s (Solutia) senior secured bank facility (revolver) rating of 'B-', senior unsecured debt and senior secured notes rating of 'CCC'.
The Rating Watch Negative status reflects the ability of the firm to successfully obtain additional bank covenant waivers and renegotiate the credit facilities which expire in August 2004. The settlement resolving the polychlorinated biphenyls (PCBs) litigation in Anniston, Alabama against the company removes the additional risk that had potentially hindered Solutia's refinancing efforts. However, weak earnings and cash flow generation along with future bond maturities, continues to present near-term liquidity issues for the company.
