S&P: Cytec outlook negative

Standard & Poor's said it revised its outlook on Cytec Industries Corp. to negative from stable and affirmed its ratings, including the BBB corporate credit rating.

The agency said the outlook revision incorporates the company's weak operating performance in the fourth quarter of 2008; expected deterioration in the company's financial profile in 2009 caused by steep sales declines in its chemicals products used for automotive, construction and general industrial markets; and higher than historic capital outlays related to an ongoing expansion project.

The ratings on Cytec incorporate the company's solid international market positions in specialty chemicals and materials, its overall satisfactory operating margins and moderate financial policies, S&P said.

These strengths are tempered by some very competitive and mature product lines hampering profitability, weak global economic conditions and volatile raw material costs, the agency added.

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