Fitch rates Huntsman notes BBB-

Fitch Ratings said it assigned a rating of BBB- to Huntsman International LLC's new issuance of senior unsecured notes.

The proceeds will be used to redeem the company's $650 million 4.875% notes due 2020, pay associated costs and accrued interest and for general corporate purposes, Fitch said.

The outlook is positive.

The outlook on parent company, Huntsman Corp., is positive.

The positive outlook reflects Huntsman's low gross leverage and strong liquidity position, which should help lessen the effects of the company's relative commodity exposure, Fitch said.

Should Huntsman maintain a total debt with equity credit operating EBITDA ratio of lower than 2.3x and continue to execute on its strategy of further differentiating its business profile, the company would likely see its credit rating upgraded to BBB.

Huntsman's credit profile is highlighted by low gross leverage and strong free cash flow generation as a result of portfolio restructuring initiatives that Fitch projects will lead to solid financial flexibility through the ratings horizon, Fitch said.

These credit strengths are offset by Huntsman's relatively higher commodity exposure than certain of its investment-grade peers, the agency said.

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