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Huntsman responds to S&P action
18 Mar '09
2 min read
Standard & Poor's Rating Services (S&P) announced a lowering of its credit rating to 'B' on Huntsman Corporation's corporate credit rating.
In response to S&P's action, Huntsman reaffirms that its operations are sound and that its liquidity is ample to weather the current global economic recession. Huntsman has met the challenging operating environment by putting in action a plan to reduce annualized costs by $150 million and reduce 2009 capital expenditures by approximately $190 million compared to the previous year.
Huntsman has no significant near term debt maturities until the second half of 2010 when its $650 million revolver matures in August and when its $296 million of senior secured notes mature in October. It intends on renewing its accounts receivable securitization facility when it matures in November 2009.
Huntsman expects to have more than $1 billion of liquidity at the end of the first quarter 2009 and be in full compliance with its single maintenance financial covenant. Liquidity may be enhanced further in 2009 through resolution of the pending multi billion dollar suit against Credit Suisse and Deutsche Bank, which is scheduled for court ordered mediation on May 11, 2009 and trial, if necessary, to commence on June 8, 2009. Further, Huntsman has claims outstanding in excess of $235 million relating to its 2006 Port Arthur Texas fire claim for which binding arbitration is scheduled later this year.
Peter R. Huntsman, its President and CEO, stated: "In spite of a prolonged disruption in the global economy, Huntsman's long term prospects are bright. Our business footprint is global and well diversified. We expect to prosper as the world economies are restored and as governments continue to make available trillions of dollars of stimulus monies. Further, our board of directors has been deliberate in stating that our present liquidity will be preserved and used prudently in addressing forthcoming debt maturities."
In response to S&P's action, Huntsman reaffirms that its operations are sound and that its liquidity is ample to weather the current global economic recession. Huntsman has met the challenging operating environment by putting in action a plan to reduce annualized costs by $150 million and reduce 2009 capital expenditures by approximately $190 million compared to the previous year.
Huntsman has no significant near term debt maturities until the second half of 2010 when its $650 million revolver matures in August and when its $296 million of senior secured notes mature in October. It intends on renewing its accounts receivable securitization facility when it matures in November 2009.
Huntsman expects to have more than $1 billion of liquidity at the end of the first quarter 2009 and be in full compliance with its single maintenance financial covenant. Liquidity may be enhanced further in 2009 through resolution of the pending multi billion dollar suit against Credit Suisse and Deutsche Bank, which is scheduled for court ordered mediation on May 11, 2009 and trial, if necessary, to commence on June 8, 2009. Further, Huntsman has claims outstanding in excess of $235 million relating to its 2006 Port Arthur Texas fire claim for which binding arbitration is scheduled later this year.
Peter R. Huntsman, its President and CEO, stated: "In spite of a prolonged disruption in the global economy, Huntsman's long term prospects are bright. Our business footprint is global and well diversified. We expect to prosper as the world economies are restored and as governments continue to make available trillions of dollars of stimulus monies. Further, our board of directors has been deliberate in stating that our present liquidity will be preserved and used prudently in addressing forthcoming debt maturities."
Huntsman Corporation
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